MTN Group Ltd has realized 2.1 billion Rand ($140.24 million) from asset sales as part of a divestment plan announced earlier in the year. This move of the telecom major comes close on the heels of a drop in its earnings by 9.3% due to a combination of reasons including economic downturn of Africa’s second-largest economy-South Africa. Importantly, MTN is reviewing its investments exposures under the three-year, 15 billion rand divestment program. Also, it has drawn up plans to focus on high-growth markets in the Middle East and Africa. Earlier this year, MTN Group has sold its shareholder loan in ATC Ghana to American Tower Corp for 900 million rand and its interests in investment fund Amadeus and booking website Travelstart for 1.2 billion rand. The company is also considering redeeming MTN Nigeria preference shares for US$315 million. It is also planning to dispose of its minority stake in Mascom Wireless Botswana for $300 million, which is likely to be concluded later this year.
MTN has been one of South Africa’s biggest corporate success stories, but clashes with regulators in Nigeria, Uganda and elsewhere have affected its growth. Other than its core strength-running of telecom network,MTN has investments in tower companies and e-commerce platforms like African online retailer Jumia, which are valued at 40 billion Rand. The company will hive off its peripheral interests to focus more on core strength.
