MTN Group was rumoured to be considering the sale of its majority stake in Botswana operator Mascom as part of a strategy to cut the number of markets it operates in.
Sources told Bloomberg a deal could raise around ZAR2.5 billion ($176 million) for the operator group.
Mascom is the largest operator in Botswana with GSMA Intelligence estimates for Q4 2018 showing it had 1.7 million connections. It competes with Orange’s local operation and former state-owned operator BTCL.
As of the company’s last interim report (dated June 2018) MTN owned a 53.1 per cent stake in Mascom.
In March 2018, MTN CEO Rob Shuter announced the company was actively assessing its portfolio to ensure units were an “appropriate strategic and operational fit taking into account demographics, regional synergies, and business and regulatory environments.”
This included the close monitoring of operations that were “not cash flow positive”.
Later in the year, MTN offloaded its operation in Cyprus. No other sales have been completed as a result of the review despite Bloomberg previously reporting it was considering the disposal of its units in Liberia, Guinea and Guinea-Bassau.Subscribe to our daily newsletter Back