MTN Group Ltd appointed Citigroup Inc and Standard Bank Group Ltd to advise on a sale and lease back of some of the carrier\u2019s South African telecom towers, according to people familiar with the matter.<\/p>\n
Africa\u2019s largest mobile-phone company by sales is looking to raise between R5 billion ($333 million) and R10 billion from the deal, said the people, who asked not to be identified as the process is ongoing.<\/p>\n
The Johannesburg-based firm will seek to attract interest from specialist tower companies operating on the continent, they said.<\/p>\n
MTN hasn\u2019t made a final decision about the scope or timing of the sale, the people said. The shares pared early gains to trade 0.7% higher as of 3:54 p.m. in Johannesburg, and are down 23% over the 12-month period.<\/p>\n
MTN, Citi and Standard Bank declined to comment.<\/p>\n
The sale of part of MTN\u2019s 13,000-strong South African tower portfolio would go toward the company\u2019s plans to raise R25 billion from asset disposals over the next three-to-five years.<\/p>\n
The carrier exited stakes in tower assets in Ghana and Uganda as part of an earlier sales drive, and last year offloaded a minority interest in e-commerce group Jumia Technologies AG.<\/p>\n
Tower companies such as IHS Holding Ltd and American Tower Corp have been expanding in Africa to tap rising demand for broadband and take up of smartphones.<\/p>\n
South Africa is in the process of rolling out 5G services and boosting rural mobile coverage, and is planning to auction new high-speed internet spectrum in March.<\/p>\n