This archive report was first published on 4 January 2020.
On January 4, 2020, MTN Group announced plans to sell its tower businesses in Ghana and Uganda as part of its efforts to refocus on high-growth markets in Africa and the Middle East.
The company had faced regulatory challenges in several countries, including Nigeria, Uganda, and others, which had hindered its growth. In response, MTN had announced a $1 billion three-year asset-disposal plan earlier in the year.
As part of this plan, MTN agreed to sell its 49% holdings in Ghana Tower Interco B.V. and Uganda Tower Interco B.V. to AT Sher Netherlands Coöperatief U.A. for $523 million.
The sale is expected to close in the first quarter of 2020, resulting in a profit of 6 billion rand ($425.74 million) for MTN. The company also finalized the redemption of MTN Nigeria preference shares, raising $315 million.
MTN plans to use the proceeds from the sale to pay down its U.S. dollar-denominated debt and for general corporate purposes. The company aims to reduce debt, simplify its portfolio, and reduce risk.
