Businessin Southern Africa

MTN moves ahead on Nigerian stake sale with markets in turmoil

MTN Group may have to consider a phased sale to reduce its majority stake in its Nigerian business but still plans to proceed with the disposal, Bloomberg reported on Tuesday. 

Group Chief Executive Officer Ralph Mupita said in an interview with the news agency that the impact of the virus on international financial markets did not change the mobile network operator’s plans to sell part of its 79% shareholding to local investors.

“In Nigeria we still want to do part of our retail offer, even if it’s a smaller part of the total planned sale,” Mupita told Bloomberg by phone. “We are applying our minds to doing this at the moment.” 

Earlier in March, telecoms group MTN revised its medium-term target for its divestment plan, and now wants to secure a further 25 billion rand ($1.40 billion) in asset sales over the next three to five-years.

The asset sales include an 18.9% stake in African online retailer Jumia, a 27 billion rand worth stake in Mauritius-headquartered IHS Towers, MTN Nigeria’s public offering and share sales to local investors in its Ugandan and Zambian units.

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