Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Business News

MTN Group considering sale of its 40% stake in Jumia

Emmanuel Abara Benson by Emmanuel Abara Benson
August 16, 2018
in Business News, Company News
MTN Nigeria

MTN Nigeria

Share on FacebookShare on TwitterShare on Linkedin

MTN Nigeria’s parent company, MTN Group Limited, is reportedly thinking about selling off its equities in one of Africa’s most dominant e-Commerce platforms, Jumia.

This is coming at a time when the South Africa-based telecoms operator is equally considering an initial public offering (IPO) on either the New York Stock Exchange or NASDAQ.

RelatedPosts

Buhari Confers GCON title on Justice Tanko, ex-CJN

Nigerians react as MTN drags 18 banks to court over N22.3 billion ‘erroneous’ transfer

Meanwhile, MTN Group has yet to release any official statement on this matter. A spokeswoman for the company had earlier today stated that the company “currently has no plans to dispose of its investment in Jumia in the short term.” But Bloomberg reports that other sources close to the company can authoritatively confirm that the developments are taking place.

MTN Group currently holds 40% stakes in Jumia which is arguably Africa’s biggest online retailer. The company is present in about 14 African countries, including Nigeria where it is in competition with Konga and other smaller e-commerce operators.

With its capital base of $1 billion, Jumia is also one of the most valued e-commerce companies on the African continent. According to Bloomberg, Jumia’s revenue has grown steadily since 2012 when it was established.

With all these in perspective, It, therefore, becomes puzzling why MTN Group is even thinking of disposing of its shares in the company.

The South African wireless carrier is not the only company thinking of offloading its shares in Jumia as smaller investors such as Rocket Internet SE is also said to be mulling said.

However, this situation plays out, one thing can be guaranteed – Jumia will be just fine. The company still has the likes of Goldman Sachs Group Inc., Millicom International Cellular SA and Orange SA as shareholders.

Note that Jumia was established six years ago in Lagos Nigeria, by two French entrepreneurs – Jeremy Hodara and Sacha Poignonnec.

Why would MTN Group even think about disposing of its shares in Jumia?

According to the report, the telco is heavily indebted and in constant need of money to offset said debts. The company’s debt volume stood at $4.8 billion as at June 2018.

The company operates in 21 countries across Europe, Middle East, and Africa. Nigeria is one of its strongest markets, with MTN Telecommunications Nigeria Limited being the biggest telecoms operator in the country.

As we reported yesterday, MTN Nigeria signed a ₦200 billion loan deal with 12 banks in efforts to raise money and expand its business. The company has yet to pay up the ₦330 billion fine imposed on it by the Nigerian Communications Commission (NCC), neither has it carried out its highly anticipated initial public offering on the floor of the Nigerian Stock Exchange (NSE).

Related

Tags: Jeremy HodaraJumiaMTN GroupMTN NigeriaSacha Poignonnec

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Hot forex
Cornerstone
Mega Millions
Polaris Bank
Access Bank
Bankers Committee
First bank


FCMB
Ikeja Electrics




    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Buhari Confers GCON title on Justice Tanko, ex-CJN
    • Share price of company that filed for Bankruptcy rallies over 300% in a week
    • Nigerians react as MTN drags 18 banks to court over N22.3 billion ‘erroneous’ transfer

    Follow us on social media:

    Recent News

    Justice Ibrahim Tanko Mohammed

    Buhari Confers GCON title on Justice Tanko, ex-CJN

    June 27, 2022
    Nigerian Consumer Goods stocks have posted the best returns this year; these are the top gainers

    Share price of company that filed for Bankruptcy rallies over 300% in a week

    June 27, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com