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Market Turmoil: MTN To Continue Sell Down Of 79% Stake In Nigerian Arm

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.

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