Sunday, January 23, 2022
More

    MTN Closes in on Tower Deal Amid Wider Breakup

    Must read

    Naija247news Editorial Teamhttps://www.naija247news.com/
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    MTN Group Ltd. is set to complete the sale and leaseback of South African towers by the end of next month, while a separation of both the fintech and fiber units is also underway as the wireless carrier strives to pay down debt.

    The tower deal could generate as much as 11 billion rand ($747 million), according to analysis by Bloomberg Intelligence. The fintech move is due to be finalized by March and fiber over the next two years, the Johannesburg-based firm said in a statement on Thursday.

    Africa’s biggest mobile-phone company is more than two years into a transformational breakup project, shedding assets and exiting markets to focus on core businesses around the continent. A key aspect is to cease operations in the Middle East, and MTN has abandoned its Syria operation as regulatory demands prevented a more orthodox exit, the group said.

    The shares rose 2.2% as of 9:27 a.m. in Johannesburg. The stock has gained almost 96% this year, the best performer on the FTSE/JSE Africa Top40 Index.

    MTN confirmed it is not going to resubmit a bid for a new license in Ethiopia, which is opening up the market to international operators for the first time. Bloomberg News reported the decision earlier this month. A previous offer by the carrier and various partners was rejected by the government.

    Sales grew by 2.1% in the six months through June, while earnings before interest, taxes, depreciation and amortization rose by 6.6%. The group outperformed in its home market of South Africa, where revenue gained 12%.

    The carrier cut debt to 36.7 billion rand from about 43.3 billion rand. MTN has repatriated 7 billion rand this year from Nigeria, where it has historically been hard to extract cash due to a lack of foreign exchange.

    ©2021 Bloomberg L.P.

    - Advertisement -spot_img

    More articles

    - Advertisement -spot_img

    Latest article

    %d bloggers like this: