MTN Group mulls sale of Jumia stake

News Broadband Africa 3 MEI 2019
MTN Group mulls sale of Jumia stake
MTN Group plans to sell at least half of its USD 655 million interest in newly listed Jumia Technologies as the group looks to pay down debt and enter new markets, Bloomberg reported citing people familiar with the matter. According to the report, a selldown of the 19 percent stake in the online retailer could happen before the end of the year. MTN first needs to wait out a half-year investor lock-in period that followed Jumia's successful share sale in New York, said the people who declined to be named.

An MTN spokesman said they have a six-month lock-up period where they cannot sell MTN’s shareholding. The spokesman added that post that period they will apply their minds on what to do with the investment. MTN is the biggest investor in Jumia, the best performing IPO in New York this year with its share price more than tripling since its 12 April debut. 

Yet MTN has earmarked e-commerce assets as not central to the company's main business of phone and data services, and has announced a ZAR 15 billion disposal plan. Other investments that could be sold include interests in flight-booking site Travelstart.co.za and telecommunication masts-operator IHS Towers. Net debt rose to ZAR 63.5 billion from ZAR 57 billion in 2018, and proceeds will be used to pay that down, MTN said in March.


 

Categories:

Internet

Companies:

MTN,  Jumia

Regions:

Africa

Tags:

Internet Access, Wholesale, M&A buyouts & divestments

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