MTN Group Ltd is in advanced talks to sell stakes in tower assets in Ghana and Uganda worth as much as R8 billion ($534 million) as Africa\u2019s largest wireless carrier looks to accelerate a broader disposal plan.<\/p>\n
The South African company is looking to exit joint ventures with American Tower Corp, which expanded on the continent with the acquisition of Eaton Towers Ltd in May.<\/p>\n
That will help MTN meet its target of generating R15 billion in asset sales over three years, the carrier said Thursday.<\/p>\n
The shares gained 0.7% to R94.22 in early trade in Johannesburg, extending the year\u2019s increase to 5.7%.<\/p>\n
The strategy hasn\u2019t gone entirely to plan since it was announced in March. A disposal of a majority stake in Botswana\u2019s Mascom for $300 million has been scrapped, while shares in e-commerce group Jumia Technologies AG have plunged since an April initial public offering, making it less viable for MTN to sell a stake in the near term.<\/p>\n
MTN\u2019s Jumia interest is now worth less than $100 million, chief executive officer Rob Shuter said by phone. \u201cIt\u2019s regrettable that the value has gone down so much,\u201d he added.<\/p>\n
Further proceeds could be generated by the redemption of the Nigeria unit\u2019s preference shares, which MTN values at $315 million, chief financial officer Ralph Mupita said on a separate call. The group is awaiting a ruling from the central bank on that matter. A proposed sale of IHS Towers Ltd – which is separate to the R15 billion plan – may be revived as shareholders including MTN prepare for a fresh tilt at an IPO next year, people familiar with the matter said this week.<\/p>\n
MTN has been exploring asset sales while focusing on key markets such as Nigeria. Revenue in the company\u2019s biggest market advanced 12% in the third quarter, while the earnings margin was 54%, according to a statement on Thursday. That\u2019s even as a $2 billion tax dispute looks set to drag on into next year.<\/p>\n
In South Africa, MTN and its rivals are battling with regulator curbs on data prices, weak consumer confidence and a delay over the release of new spectrum. Sales in that market rose by 0.4% in the three months through September, while subscriber numbers fell.<\/p>\n
Overall customer numbers increased by 3.5 million in the third quarter to 243.7 million across MTN\u2019s 21 countries across Africa and the Middle East.<\/p>\n