MTN Group has announced an agreement to sell off 49% equity holding in its Tower Assets in Ghana and Uganda. The transaction is expected to close by the first quarter of 2020.
In recent times, MTN has been embattled with diverse regulatory challenges varying from clashes with regulators to tax evasion charges. The incessant challenges have somewhat crippled the growth of the company and led to a $1billion three-year asset disposal.
A statement released by the telco noted that it will simplify its portfolio, reduce its debt risk and improve returns by at least $1 billion in 3 years.
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The 49% equity holding of Ghana Tower Interco B.V. and Uganda Tower Interco B.V. will sell for $523 million to AT Sher Netherlands Cooperatief UA. If the tower sales go through by the first quarter of the year, it will make MTN Group gain $425.74 million.
Also, the telco had finalized the redemption of its MTN Nigeria Preference share to gain $315 million. The proceed from the sales will pay the dollar-denominated debt and aid general corporate purposes.
The company will also shed some loss-making e-commerce assets and exit countries where it has no prospect of reaching the top- two spots in terms of market shares.
And like Jumia, MTN is set to draw the curtain in some countries. We hope the decision benefits the telco and keep them in business for a long time.