MTN has concluded an agreement to dispose of its 49% equity holdings in the Ghana and Uganda Tower Company investments to a subsidiary of American Tower Company for $523 million, approximately R7.3 billion. This transaction is expected to close in Q1 2020.
Clashes with regulators in Nigeria, Uganda and elsewhere have crimped growth, prompting the company to announce a $1 billion three-year asset-disposal plan earlier this year.
The sale is expected to close in Q1 2020, leaving MTN with a profit of six billion rands ($425.74 million).
The company also said it had finalised the redemption of MTN Nigeria preference shares, raising $315 million.
MTN said it will use the proceeds to pay down its U.S. dollar-denominated debt and for general corporate purposes.
“We remain focused on continuing to execute on the important strategic priorities of reducing debt, simplifying the portfolio and reducing risk,’’ the firm said in a statement.
The company is aiming to shed loss-making e-commerce assets and exit countries where it has no prospect of reaching the top-two spots in terms of market share. ($1 = 14.0931 rand)
