{"id":596945,"date":"2019-03-07T08:15:07","date_gmt":"2019-03-07T08:15:07","guid":{"rendered":"
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MTN Group Ltd.<\/span><\/span>\u00a0announced the disposal of its share in a Botswana joint venture as Africa\u2019s biggest wireless carrier by revenue kicks off a drive to raise at least 15 billion rand ($1.1 billion) from asset sales and strengthen the balance sheet. <\/span><\/span><\/span><\/p>\n

The company agreed to sell its 53 percent stake in Botswana\u2019s Mascom to Econet Wireless Zimbabwe Ltd. for $300 million, the Johannesburg-based company said in a\u00a0statement\u00a0on Thursday. Bloomberg News reported the deal earlier this week. Other businesses now on the market include e-commerce services, which includes Nigerian online retailer Jumia Technologies AG. and Travelstart.co.za. MTN is also looking to sell its interest in IHS Towers Ltd., the company said.<\/p>\n

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The news comes a year after Chief Executive Officer Rob Shuter announced a review of MTN\u2019s then-22 markets across the Middle East and Africa to evaluate ways of simplifying the business. The sale of MTN\u2019s Botswana interest follows a disposal of its Cyprus unit for 260 million euros ($294 million).<\/span><\/span><\/span><\/p>\n

\u201cWe are simplifying the group, we are reducing risk, and improving returns,\u201d Shuter said in a phone interview. \u201cThat will generate some returns that will be helpful for our gearing and other priorities.\u201d<\/span><\/span><\/span><\/span><\/p>\n

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MTN reported the strategy alongside 2018 adjusted earnings per share, excluding some items, of 3.37 rand. That compared with a company guidance of 3.28 rand to 3.46 rand. The company also raised its medium-term service-revenue guidance to double-digit percentage figures from upper-single-digits. Dividend growth will be in the 10 percent to 20 percent range, though for 2019 the payout will probably be at the lower end of the range.<\/span><\/span><\/span><\/p>\n

The mobile-phone company is still facing a number of challenges across its territories, with a Nigeria court hearing into an alleged unpaid tax bill of about $2 billion due later this month. That\u2019s just the latest in a series of controversies in MTN\u2019s biggest market. Late last year, the carrier agreed to pay $53 million to settle a separate allegation about the illegal repatriation of funds, while a $1 billion fine in 2016 led to a full-year loss. MTN still plans to list its Nigeria unit in Lagos over the first half of the year.<\/span><\/span><\/span><\/p>\n

The $53 million outlay was among one-time costs outlined by MTN in a recent trading statement as hurting 2018 earnings. Those also include the effect of a stronger rand when compared to the various other currencies it uses in different markets.<\/span><\/span><\/span><\/p>\n

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MTN\u2019s shares have slumped 39 percent in the last 12 months, and have declined for eight consecutive days. The stock is trading at six month lows, valuing the company at 143 billion rand ($10 billion).<\/span><\/span><\/span><\/p>\n

The carrier was cagey about recent challenges in Uganda, where its local CEO was deported last month. MTN has been granted an extension of its operating licence to allow for negotiations about a renewal, the company said.<\/span><\/span><\/span><\/p>\n

MTN also reiterated that it sees \u201cno legal merit\u201d in a long-running $4.2 billion lawsuit by Turkcell Iletisim Hizmetleri AS over the award of its Iran license. The case returned to the spotlight in February after South Africa\u2019s former ambassador to Iran was arrested on corruption charges.<\/span><\/span><\/span><\/p>\n

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The full-year year dividend was 5 rand a share, while subscriber numbers increased to 233 million across 21 countries.<\/span><\/span><\/span><\/p>\n<\/div>\n