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JSE-listed MTN Group subsidiary MTN Dubai has sold 100% of MTN Cyprus to Monaco Telecom for R4.1-billion in cash.
The deal, which forms part of the group’s ongoing portfolio review, values the Cyprus subsidiary eight times that of reported 2017 earnings before interest, taxes, depreciation and amortisation.
“[MTN Cyprus] falls outside the group’s core footprint of Africa and the Middle East. The transaction, which is subject to various closing adjustments, allows MTN to realise an attractive valuation for the asset,” the company said in an update to shareholders on Monday.
As part of the transaction, Monaco Telecom will use MTN’s brand in Cyprus for up to three years in return for a commercial fee.
MTN Cyprus is MTN’s only operating business in the European Union and was acquired as part of MTN’s acquisition of telecoms holding company Investcom in 2006.
MTN expects to close the deal within the third quarter of this year.