MTN Group Ltd. is planning to sell part or all of its $243 million (R4.1 billion) interest in Jumia Technologies AG as Africa\u2019s biggest wireless carrier looks to pay down debt and enter new markets, according to people familiar with the matter.<\/p>\n
MTN, which had previously marked the online retailer as a non-core business, is reviving plans for a sale after Jumia\u2019s shares surged 142% this year, recovering from a dip in 2019, one of the people said.<\/p>\n
No final decisions about the sale have been made, the people said, asking not to be identified because the plans are private.<\/p>\n
Called Africa\u2019s Amazon, Jumia operates in 14 African countries including Nigeria and Ivory Coast where the U.S. giant still lacks distribution infrastructure.<\/p>\n
The company – headquartered in Germany and run by its two French founders, Sacha Poignonnec and Jeremy Hodara – had dropped below its initial public offering price in 2019 after improper transactions in its Nigeria business were uncovered.<\/p>\n
Johannesburg-based MTN has been disposing of non-core assets as part of the company\u2019s strategy to reduce debt and drive future growth.<\/p>\n
The company also has a 29% stake in IHS Towers, which it may sell in the future, one of the people said. Africa\u2019s largest wireless carrier by footprint has generated R14 billion ($812 million) in asset sales that included selling its towers holdings in Ghana and Uganda to American Towers Inc.<\/p>\n
The company plans include bidding for a license to enter Ethiopia, one of the largest markets that have not yet privatized its telecommunications industry.<\/p>\n
A spokeswoman for MTN declined to comment because the company is in a closed period ahead of financial results. A representative for Jumia declined to comment. IHS didn\u2019t immediately respond to a request for comment.<\/p>\n