South Africa's MTN completes sale of Guinea-Bissau unit to Telecel
TLDR
- MTN Group sells MTN Guinea-Bissau to Telecel Group Mobile Limited, completing strategic portfolio transformation.
- Smooth ownership transition emphasized, benefiting stakeholders and telecommunications sector in Guinea-Bissau.
- Sale follows regulatory approvals, aligning with MTN's strategic objectives.
MTN Group, a pan-African telecom company, announced today that it has completed the sale of its West African subsidiary, Spacetel Guinea-Bissau S.A. (MTN Guinea-Bissau) to Telecel Group Mobile Limited after securing all necessary regulatory approvals.
This sale aligns with MTN's strategic goal of streamlining its portfolio. The company emphasized its commitment to ensuring a smooth transition of ownership, which it believes will benefit MTN Guinea-Bissau, its stakeholders, and the broader telecommunications sector in Guinea-Bissau.
MTN's focus is now on its larger markets, such as Ghana, Cameroon, and Côte d'Ivoire, which have collectively contributed more than 18% to the group's revenue. Notably, MTN Ghana holds a dominant position in the market, classified as a Significant Market Power (SMP).
Key Takeaways
In March 2024, MTN disclosed its decision to exit two markets in West and Central Africa (WECA) by selling its equity interests in Guinea-Bissau and Guinea-Conakry to Telecel Group Mobile Limited. This move followed a sale and purchase agreement finalized in December 2023. The decision was part of MTN's strategic shift to concentrate on more profitable and larger regional markets. The exit was prompted by financial difficulties, particularly for MTN Guinea-Bissau, which had breached an R171 million ($9.3 million) loan, leading to its insolvency in December 2023 after its liabilities exceeded its assets. MTN agreed to sell both MTN Guinea-Bissau and MTN Guinea-Conakry for $1 per company, reflecting their financial struggles.
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