MTN announced its Asset Realisation Programme (“ARP”) in March 2019 which aims to simplify its portfolio, reduce debt and risk, improve returns and realize 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 thus far.
Firstly, MTN has 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. 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 (cR4,4 billion).
Group President and CEO Rob Shuter commented, “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.”