Rob Shuter
MTN
HAS announced its Asset Realisation Programme (ARP) in March 2019 which aims to
simplify its portfolio, reduce debt and risk, improve returns and realise
proceeds of at least R15 billion over three years. Following on the proceeds
raised from the disposals of its stakes in Amadeus, Travelstart and the ATC
loan of R2.1 billion earlier in the year.
MTN
has now concluded two further transactions bringing the total proceeds from its
ARP to R14 billion so far.
Firstly,
MTN has concluded an agreement to dispose its 49% equity holdings in the Ghana
and Uganda Tower Company investments to a subsidiary of American Tower Company
for US$523 million, approximately R7.3 billion.
This
transaction is expected to close in Q1 2020. Secondly MTN confirms that MTN
Nigeria has completed the redemption of its preference shares with MTN Group
receiving, in December 2019, an amount of US$315 million (R4.4 billion).
Group
President and CEO Rob Shuter commented: “Following the completion of these
transactions, MTN will have realised proceeds of approximately R14 billion
within the first 12 months of this program. Realising proceeds from simplifying
the group remains a major strategic objective and we expect further progress in
this program in 2020.”
