In view of the huge drop in prices on the Nigerian Stock Exchange (NSE), just as other exchanges across the globe, arising from the aftermath of the Coronavirus (Covid-19) scourge that has left the world’s economy gasping for breathe, Africa’s largest telecoms operator, South Africa’s MTN Group says it is going ahead with plans to reduce its 79% majority stake in its Nigerian arm, among others.
The sale, according to MTN Group’s Chief Executive Officer, Ralph Mupita, told Bloomberg in an interview could be via a phased sale to local investors.
Mupita told Bloomberg by phone, “In Nigeria, we still want to do part of our retail offer, even if it’s a smaller part of the total planned sale. We are applying our minds to doing this at the moment.”
This is coming weeks after the group revised its medium-term target for its divestment plan, and now wants to secure a further $1.40bn (25 billion rand) in asset sales over the next three to five years.
Besides the asset sales in Nigeria, the group plans to dispose of its 18.9% stake in African online retailer MTN Ni, another 27 billion rand worth stake in IHS Towers with headquarters in Mauritius; as well as share sales to domestic investors in its Ugandan and Zambian units.