MTN has announced it plans to\u00a0dispose of its 50.02% shareholding in\u00a0Afrihost.<\/p>\n
The move is part of MTN\u2019s \u201cstrategy of focussing on core business and pursuing opportunities in relevant adjacent businesses\u201d.<\/p>\n
\u201cThe transaction is still subject to regulatory clearances and Competition Commission approval,\u201d said MTN.<\/p>\n
MTN bought its\u00a0shareholding<\/strong><\/a> in Afrihost in 2014 for\u00a0R408 million.<\/p>\n \u201cEvolving market circumstances have resulted in MTN reviewing its ownership in Afrihost. As a result, MTN has agreed to dispose of its shareholding to the executive management of Afrihost.\u201d<\/p>\n Afrihost came under fire for poor DSL network performance following its deal with MTN, which led the ISP to create its own network and move away from MTN as its upstream supplier.<\/p>\n \u201cOur decision to create our own network is not based on MTN\u2019s network or a breakdown in service or our relationship,\u201d said Afrihost in 2015<\/strong><\/a>.<\/p>\n MTN \u201cagreed and supported\u201d the move, said the ISP.<\/p>\n Rumours of\u00a0Afrihost\u2019s directors making an offer to MTN to buy back its 50% stakesurfaced in May<\/strong><\/a>, with a\u00a0source telling MyBroadband that discussions were at an advanced stage.<\/p>\n \u201cWe have enjoyed a long and fruitful partnership with MTN over the years and we are grateful for everything they have done for us. MTN will remain a key supplier of ours, and we look forward to continue working with them for the years ahead,\u201d said Gian Visser, Afrihost\u2019s CEO.<\/p>\n The\u00a0\u201cspirit\u201d of the sale means MTN expects this development to have minimal impact on its customers.<\/p>\n Republished\u00a0from MyBroadband<\/a><\/strong>, with permission.<\/em><\/p>\n Afrihost Mobile voice services launching soon<\/a><\/strong><\/p>\n How much MTN paid for Afrihost<\/a><\/strong><\/p>\n Afrihost-MTN deal clears all regulatory hurdles<\/a><\/strong><\/p>\nFruitful partnership<\/h3>\n
More on MTN and Afrihost<\/h3>\n