MTN realises R14bn in asset sales in 2019

24th January 2020

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

Font size: - +

JSE-listed telecommunications giant MTN has secured proceeds of R14-billion to date through its asset realisation programme (ARP).

The programme kicked off in March last year, aiming to simplify the group’s portfolio, reduce debt and risk, improve returns and realise proceeds of at least R15-billion over three years.

The group disposed of its stakes in investment fund Amadeus, Travelstart and the ATC loan of R2.1-billion earlier in the year.

MTN agreed to sell all its interest in Amadeus and its associated holding in Travelstart to private equity firm HarbourVest for net proceeds of R1.2-billion.

The conclusion of two further transactions brought total proceeds to R14-billion to date.

MTN concluded an agreement to dispose of its 49% equity holdings in its Ghana and Uganda Tower Company investments to a subsidiary of American Tower Company for $523-million, or about R7.3-billion.

This transaction is expected to close in the first quarter of 2020.

Further, MTN Nigeria has completed the redemption of its preference shares with MTN Group receiving $315-million, or R4.4-billion, in December.

“Following the completion of these transactions, MTN will have realised proceeds of about R14-billion within the first 12 months of this programme,” says MTN Group president and CEO Rob Shuter.

“Realising proceeds from simplifying the group remains a major strategic objective and we expect further progress in this programme in 2020,” he concludes.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION