MTN offloads MTN Cyprus to Monaco Telecom for R4.1 billion
MTN Dubai, a wholly owned subsidiary of MTN Group, has entered into an agreement in which it has sold 100% of MTN Cyprus to Monaco Telecom as part of an ongoing review of its portfolio.
The net sale proceeds of €260 million (approximately R4.1 billion) will be paid upfront in cash and values MTN Cyprus at approximately 8x reported 2017 EBITDA.
MTN has also agreed to allow Monaco Telecom to use the MTN brand in Cyprus for up to three years in return for a commercial fee, the group said in a statement on Monday.
MTN Cyprus is MTN’s only operating business in the European Union, and was acquired as part of MTN Group’s acquisition of telecoms holding company Investcom LLC in 2006. It falls outside the group’s core footprint of Africa and the Middle East.
MTN expects the transaction to close within the third quarter of 2018.
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