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MTN Group has announced the disposal of its share in a Botswana joint venture, as Africa’s biggest wireless carrier by revenue kicks off a drive to raise at least R15 bilion from asset sales and strengthen the balance sheet.
The company agreed to sell its 53 percent stake in Botswana’s Mascom to Econet Wireless Zimbabwe for $300 million, the Johannesburg-based company said in a statement on Thursday. Bloomberg News reported the deal earlier this week.
Other businesses now on the market include e-commerce services, which includes Nigerian online retailer Jumia Technologies and Travelstart.co.za. MTN is also looking to sell its interest in IHS Towers, the company said.
The news comes a year after Chief Executive Officer Rob Shuter announced a review of MTN’s then-22 markets across the Middle East and Africa to evaluate ways of simplifying the business. The sale of MTN’s Botswana interest follows a disposal of its Cyprus unit for €260 million.
“We are simplifying the group, we are reducing risk, and improving returns,” Shuter said in a phone interview. “That will generate some returns that will be helpful for our gearing and other priorities.”
MTN reported the strategy alongside 2018 adjusted earnings per share, excluding some items, of R3.37. That compared with a company guidance of R3.28 to R3.46. The company also raised its medium-term service-revenue guidance to double-digit percentage figures from upper-single-digits. Dividend growth will be in the 10% to 20% range, though for 2019 the payout will probably be at the lower end of the range. — Fin24
Bongani Ndlovu