MTN Group, Africa’s largest network operator by subscriber base, has accepted an undisclosed offer from Africa-focused telecommunication service, Telecel, for the sale of its equity interests in MTN Guinea-Bissau and Guinea-Conakry, as it looks to exit smaller markets in the West and Central Africa (WECA) region.
MTN revealed this development in its 2023 financials.
A spokesperson for MTN confirmed the sale of the business segments but declined to comment on how much the sale would cost.
Further, in the aforementioned report, MTN shared that its Guinea-Bissau and Guinea-Conakry businesses have been classified as held for sale as of December 31, 2023.
“Telecel, an established telecoms operator with a significant presence in Africa, is well positioned to drive the growth and further development of these operations and contribute to technological and economic progress in these markets,” a note in its financials said.
This move will allow MTN to focus on Ghana, Cameroon, and Cote d’Ivoire, stronger markets in the West and Central Africa region which collectively contribute 18.6% to the group’s revenue, over other West and Central African (WECA) countries that contribute 7.3% to the firm.
MTN Guinea-Bissau recorded some poor performances after it breached a loan covenant as result of its negative EBITDA performance. (EBITDA means Earnings Before Interest, Taxes, Depreciation, and Amortisation.)
The process of converting MTN Guinea-Bissau’s financial results into its primary currency resulted in a loss of R1.69 billion ($89,392,809), per its annual report.
Telecel has just rebranded Vodafone Ghana to Telecel Ghana, after last year’s approval of the sale of 70% Vodafone shares on Ghana Telecom to it. That deal was said to be an all-cash deal but, like the current MTN deal, the actual cash figure has remained a secret till date.
Like MTN, Telecel prides itself with being an African and Africa-focused telco, committed to expanding its footprint is on a continents where it was born in 1974 by a Congolese business man.
The Vodafone Ghana acquisition was the biggest yet for Telecel, and it appears that the MTN Guinea-Conakry and Guinea-Bissau acquisitions are the second biggest for the company, which has already announced its intention to go public via an IPO (initial public offer) in the next four years.
