MTN Group sells towers in Ghana and Uganda to cut debt

The MTN Group has agreed to sell 49 per cent of its tower businesses in Ghana and Uganda to a subsidiary of American Tower Company for $523 million.

MTN had fallen into hot water with regulator in Nigeria, Uganda and Ghana. Thus led to the company spending US$ 1 Billion over the course of 3 years in its Asset Realization Program.

A statement from the company read, “MTN has agreed to dispose off its 49% equity holdings in the Ghana and Uganda Tower Company investments to a subsidiary of American Tower Company for $523 million. This transaction is expected to close in Q1 2020.”

A reporting by Reuters speculates that MTN is exiting countries where it has little probability to achieve the top two spots in terms of market share.

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At the end of 2019, MTN Nigeria redeemed its preference shares with the MTN group for US$ 315 million.

The share redemption as well as the sale could see the company raise US$984 million within the first 12 months of the Asset Realization Program.

MTN CEO, Rob Shuter, said, “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.”

The sale to American Towers is still pending regulator approval.

MTN will channel the funds towards settling outstanding debt and other internal corporate purposes.