MTN Wants to Reduce Majority Ownership of its Nigerian Business with Sale of Stakes in IHS Towers


Telecom giants, MTN Group is making plans to sell up to 14% of its ownership in Nigerian businesses as part of its $1 billion three-year asset-disposal plan.

Since initiating the assets sales plan in March, MTN has raised about $950 million. The telco hopes to continue the process by selling some of its stakes in Nigerian businesses, according to Bloomberg.

Helios Towers Trades Flat in London Debut, Raises $ 364 million in IPO, MTN to Reduce its Majority Ownership in Nigeria with Sale of IHS Towers Stake
MTN plans to sell its stake in IHS Towers

With the asset sales, MTN is looking to raise money to pay down debt and simplify its portfolio of businesses that spreads across Africa and the Middle East.

Recently, MTN sold minority stakes in its tower joint ventures in Ghana and Uganda, raising about $523 million. It also redeemed preference shares in Nigeria.

Now, MTN is looking to reduce majority ownership of its business in Nigeria by selling about 14% of its Lagos-listed operation. IHS Holdings Ltd., the continent’s largest operator of wireless towers, is on that list.

According to MTN spokeswoman, the value of MTN’s stake in IHS Towers was about $1.5 billion in June. The sale of MTN’s share is expected to reduce its stake in Nigerian business to about 65%.

MTN executives meet PMB to declare interest in investing in Nigeria's Network and systems
MTN promised to invest $1.6 billion into strengthening networks in Nigeria

This development comes after Nigeria’s attorney general dropped a claim of $2 billion backlog of taxes against the company.

The company has also began plans of focusing investment on its main markets as MTN Group chairman, Mcebisi Jonas promised to invest $1.6 billion into strengthening networks and telecoms systems across the country.

Following reports of the proposed assets sale, MTN shares gained as much as 2% but eventually traded 0.8% lower as of 10:09 a.m. in Johannesburg.

If you’d like to get featured on our Entrepreneur Spotlight, click here to share your startup story with us.

Related Posts