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MTN exits two African countries. It has struck a share purchase deal with Telecel to acquire MTN’s stakes in Guinea Bissau and Guinea Conakry.
Launched in 1994, MTN Group is a leading emerging mobile operator in the world. MTN invested significantly in advanced communications networks. Connecting more than 203 million people in 22 countries across Africa and Middle East.
MTN Group Limited is a South African multinational corporation and mobile telecommunications provider. Its
head office is in Johannesburg. As of December 2022 MTN recorded 289.1 million subscribers. MTN is among the largest mobile network operators in the world, and the largest in Africa.
In MTN’s annual financial report for the year 2023, it disclosed information about a deal with Telecel which was finalized in December 2023. This deal is to allow Telecel operate in Guinea Bissau and Guinea Conakry using MTN’s stakes.
Exit of smaller WECA markets.
“MTN and Telecel entered into a share purchase agreement for the acquisition of MTN’s equity interests in MTN Guinea-Bissau and MTN Guinea-Conakry. The agreement was reached in December 2023 and is subject to a number of conditions precedent. Telecel, an established telecoms operator with a significant presence in Africa, is well positioned to drive the growth and further development of these operations and contribute to technological and economic progress in these markets. As we advance through this transition, MTN is focused on ensuring a smooth and seamless transition for our customers, employees and all other stakeholders. Further updates regarding this transaction will be provided as appropriate”
https://www.mtn.com/wp-content/uploads/2024/03/MTN-Group-FY-23-results-SENS-1.pdf
According to the report, this exit is to allow MTN prioritize its operations in lager markets such as Ghana, Nigeria, Cameroon and Cote d’Ivoire in the West and Central African regions.
MTN believes that Telecel is an established telecoms operator and has the capacity to drive development in the two countries which have been exited. However, the value of this sale is unknown. MTN says further updates on this deal will be provided in due time.
The reason for the exit is as a result of inflation and weak market performances in these countries. In Guinea Bissau, MTN experienced financial challenges. MTN reported a loss of R1.69 billion ($89,392,809) in its annual report. Collectively, these markets contribute lesser amount in the firm’s overall revenue.
Outside of Africa, MTN has also divested 100% of its shares in MTN Afghanistan to Investcom AF and has entered into a six-month transitional services agreement.
https://pinkfmonlinegh.com/news/
By; Annabella Araba Essilfie.
