Africa’s Largest Wireless Carrier MTN to Sell Middle East Units

LAGOS (Capital Markets in Africa) — MTN Group Ltd. plans to exit the Middle East as Africa’s biggest wireless carrier changes focus to its home continent.

The Middle East “environment is becoming increasingly complex and it contributes less to the group’s earnings,” Chief Executive Officer Rob Shuter said on a call with reporters Thursday.

The disposals will be done in a phased manner, with its three consolidated subsidiaries in Yemen, Afghanistan and Syria earmarked to be sold first. These markets only contribute about 4% to the group’s earnings before interest, depreciation, taxation and amortization, said, Shuter. Talks to sell the 75% shareholding in MTN Syria are advanced, he said.

In the medium term the group will also dispose of its 49% stake in MTN Irancell, one of its largest markets.

“It is our intention to exit the entire portfolio in time,” which will leave MTN with 17 markets in Africa, said Shuter. The news comes as the CEO plans to step down in March, with his successor still to be announced.

MTN has been on a drive to dispose of assets, to streamline its operations and generate cash to reduce debt. It has managed to make 15 billion rand ($867 million) with disposals and aims to realize a further 25 billion rand over the next three to five years, the group said as it reported first-half results on Thursday. Adjusted earnings per share for the six months through June was up 121% at 4.30 rand.

The Johannesburg-based company is also evaluating its stake in Jumia Technologies and IHS Towers said Shuter.

Source: Bloomberg Business News