MTN to rake $300m from sale of Botswana unit

…Eyes $1.1b from asset sales

As part of efforts to raise at least $1.1 billion from asset sales and cement its financial base, MTN Group has agreed to sell its 53 per cent stake in Botwana’s Mascom to Econet wireless Zimbabwe Ltd. for $300 million.

This is coming on the back of the announcement by its Chief Executive Officer Rob Shuter a year ago about the likelihood of a review of MTN’s 22 markets sandwiched between the Middle East and Africa with a view to working out ways of simplifying its business. Earlier, MTN had disposed of its Cyprus unit for $294 million.

Also, MTN is set to dispose of its interest in IHS Towers Ltd. and other businesses including its e-commerce services like Nigerian online retailer Jumia Technologies AG and Travelstart.co.za are on the market, the company said in a statement on Thursday.

Shuter had told Bloomberg in a phone interview that, “We are simplifying the Group, we are reducing risk, and improving returns. That will generate some returns that will be helpful for gearing and other priorities.”

According to its published financial results for the year ended December 31, 2018, the mobile operator stated that service revenue across the group was up to 10.7 per cent while MTN South Africa’s service revenue was up but by a smaller margin of 4.2 per cent.

“We are drawing the line in market share losses for MTN South Africa. We have given up what we have given up, and going forward we are not going to be losing anymore market share”, he said

Meanwhile, the company has been locked in battles with the Nigerian government over issues ranging from alleged unpaid tax to allegation of illegal repatriation of funds. However, hearing into the alleged unpaid tax bill in the region of $2.2 billion is due later in March.

The company, through its Public Relations Manager, Mr Funso Aina, had faulted the Attorney General of the Federation Abubakar Malami on the tax debt which he alleged the telco owed.

Recall that the company had agreed to pay $53 million in a move to settle the issues raised by the allegation about illegal repatriation of funds.