Telecommunications giant, MTN Group has dropped its plan to sell 53% of its equity stake in Mascom Wireless Botswana over the inability to meet with certain conditions regarding the transaction.
The Details: The canceled transaction is coming at a time when MTN is concerned with diverting its attention to high growth markets, after clashes with regulators in Nigeria, Uganda and other countries stunted its expansion plans.
The deal was expected to give Mascom Wireless Botswana $300 million if successful.
[READ MORE: MTN Nigeria records 28.9% profit growth in nine months]
The Chief Financial Officer for the telco group, Ralph Mupita stated that since the bid for MTN’s stake in the Botswana firm was unsolicited for, the deal was no longer up for sale. However, Mupita added that if a buyer came with an attractive offer, they might consider it.
“In the longer term, if somebody came with a very attractive offer for the business, we’ll apply our minds then,” he said.
Other ongoing deals: Mupita hinted at other deals still in the background. If they were successful, MTN would gain 15 billion rands ($1.00 billion). He disclosed that the telco was looking to dispose 49% of its holdings in ATC Ghana and ATC Uganda, valued at 7 billion rands and 8 billion rands, respectively.
Why this matters: The Group is looking to dominate the continent and has embarked on a three-year plan that involves:
- closing up shop in countries where it may never attain top two in terms of market share; and
- selling off e-commerce assets in countries that have either run at a loss or failed to scale.
What you should know: The telecommunications firm disclosed that its service revenue for the first three quarters of 2019 rose by 9.6% year-on-year, based on strong performances from its Nigeria and Ghana operations.
Unfortunately, MTN has fallen on bad times in its base in South Africa where a sluggish economy, high unemployment, and rising living costs, have contributed to its dwindling revenue.
[READ ALSO: MTN’s never-ending $2 billion tax case has a new court date]
About Mascom Wireless: Mascom Wireless is Botswana’s leading telecommunications provider, founded in 1998. It has established a formidable history and brand that is well-known and recognized throughout the country. Providing the widest coverage in Botswana which reaches over 95% of the population, Mascom prides itself as a community-oriented corporate citizen.