MTN announced its Asset Realisation Programme (“ARP”) in March 2019 which aims to simplify its portfolio, reduce debt and risk, improve returns and realise proceeds of at least R15 billion over three years.
Following on the proceeds raised from the disposals of its stakes in Amadeus, Travelstart and the ATC loan of R2,1 billion earlier in the year MTN has now concluded two further transactions bringing the total proceeds from its ARP to R14 billion thus far.
Firstly, 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.
Secondly MTN confirms that MTN Nigeria has completed the redemption of its preference shares with MTN Group receiving, in December 2019, an amount of US$315 million (cR4,4 billion).
Group President and CEO Rob Shuter commented “Following the completion of these transactions, MTN will have realised proceeds of approximately R14 billion within the first 12 months of this program. Realising proceeds from simplifying the group remains a major strategic objective and we expect further progress in this program in 2020.”
About the MTN Group
Launched in 1994, the MTN Group is a leading emerging market operator with a clear vision to lead the delivery of a bold new digital world to our 244 million customers in 21 countries in Africa and the Middle East. We are inspired by our belief that everyone deserves the benefits of a modern connected life. The MTN Group is listed on the JSE Securities Exchange in South Africa under the share code “MTN”. We are pursuing our BRIGHT strategy with a major focus on growth in data, fintech and digital businesses.