MTN Group announced on Thursday that it has completed the sale of ATC joint ventures.
Africa’s largest mobile phone operator sold ATC joint ventures for R8.9 billion.
The sale is part of MTN’s asset realisation programme (ARP), introduced in March 2019, which aims to reduce debt, simplify its portfolio, reduce risk and improve returns.
Subsequent to MTN Group’s announcement on 11 March 2020 reporting its 2019 annual results and the conclusion of the disposal of its stake in ATC Uganda for R2,2 billion, MTN confirms that regulatory approvals have now been received for the disposal of its stake in ATC Ghana.
MTN is due to receive further transaction proceeds of approximately $384 million (R6,7 billion, based on an exchange rate of R17,4:$1) in the next week.
This takes the total proceeds received for the disposal of both ATC Uganda and ATC Ghana to R8,9 billion, which will be applied to paying down US-dollar debt and general corporate purposes.
“On completion, the group will have realised R15 billion within the first 12 months of its initial three-year ARP,” the company said.
Consequently, MTN has enhanced its ARP guidance framework to a target of at least R25 billion in further asset realisations over the medium-term (3-5 years), and a holding company leverage target ratio of below 2 times.
“MTN has strengthened its operational and financial position is well-placed to weather the prevailing turbulent macroeconomic environment,” said the group.
“The group remains focused on its strategic execution and committed to its clearly-defined and disciplined capital allocation framework.”
MTN declared a final dividend of 355 cents per share on 11 March 2020, bringing the total dividend to 550 cents per share for the 2019 financial year.