MTN Group CEO Ralph Mupita (pictured) told Financial Times (FT) the company targeted a valuation of between $5 billion and $6 billion for its mobile money arm, as it prepared the sale or listing of a minority stake in the unit.
In an interview with the newspaper, Mupita outlined basic details about the future of its mobile financial services arm, which is set to be separated as part of a strategy to help it cash-in on various assets unveiled in March.
The company, which operates across several of Africa’s largest markets, has long prized its mobile money offer with the segment often cited as one of the major growth areas in the business.
Mupita told FT MTN planned to structurally separate the business within the next year.
Funds raised from its money and infrastructure assets will go towards further cuts in MTN’s debt pile, adding to disposals of a number of parts of the business deemed non-core in the last two years.
MTN is also in the process of selling-up in the Middle East as it plans to focus its efforts on Africa.
The operator is not alone in seeking to raise money on the strength of its mobile financial services business, with regional rival Airtel Africa selling two separate stakes in its equivalent to investment company TPG and Mastercard earlier this year.