MTN Group is reportedly in talks with potential international buyers for its wireless business in Afghanistan as part of efforts to accelerate plans to exit the country, Bloomberg reported citing people familiar with the matter. MTN, which has 40 percent market share, is in discussions with several parties, according to the report.
MTN announced just over a year ago a plan to exit countries in the Middle East over the medium term, enabling the Johannesburg-based company to focus on African markets. The carrier has since abandoned its operation in Syria, citing regulatory demands that made operating there untenable, though said last month it’s still evaluating options in Yemen and Afghanistan.
A spokesman declined to comment on market speculation.
Telecom companies operating in Afghanistan, which also includes Etisalat, have reassured customers and investors they are keeping services running following the collapse of the US-backed government last month, while trying to secure the safety of their employees in the country.
The Taliban formed a new government on 07 September and have said investments from China will be essential to rebuilding an economy ravaged by twenty years of war. None of the potential bidders are currently from China, the people said. A writedown of MTN’s Afghanistan business without any proceeds from a disposal would cost about ZAR700-million, the people said. Other operators in the country include State-owned Afghan Wireless and Roshan, a joint venture between Monaco Telecom and a Swiss development agency, as well as Etisalat.
