MTN has announced the sale of assets worth R14 billion in 2019, as the sale are expected to be finalized in the first quarter of 2020.
The action followed the announcement made by the company in March 2019 to simplify its portfolio, reduce debt and risk, improve returns and realize proceeds of at least R15 billion over three years through what it called Asset Realization Programme (ARP).
The breakdown of the asset sale: MTN in a press statement on its website disclosed that it firstly concluded an agreement to dispose of its 49% equity holdings in the Ghana and Uganda Tower Company investments to a subsidiary of American Tower Company for $523 million, approximately R7.3 billion.
Secondly, MTN confirmed that MTN Nigeria had completed the redemption of its preference shares with MTN Group receiving in December 2019, an amount of $315 million (R4.4 billion).
It added that the proceeds from the sale of its stakes in Amadeus, Travelstart, and the ATC loan of R2.1 billion, two other transactions, brings the total proceeds to R14 billion thus far.
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Meanwhile, the Asset Realization Programme, which is expected to last for 3 years and realize R15 billion, has already realized R14 billion in the first 12 months, the company’s Group President and CEO, Rob Shuter stated.
“Following the completion of these transactions, MTN will have realized proceeds of approximately R14 billion within the first 12 months of this program. Realizing proceeds from simplifying the group remains a major strategic objective and we expect further progress in this program in 2020,” Shuter said.
Meanwhile, MTN has made a list of the 30 biggest stocks at the Nigerian Stock Exchange (NSE 30 Index) while displacing GlaxoSmithKline Consumer Nigeria from the NSE Pension Index and the NSE Lotus Islamic Index. The telco giant also made it to the NSE Corporate Governance Index.
