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.