MTN Group’s sale of its Cyprus unit could be the start of a broader exit from small or problematic markets, with the Liberian unit leading a number of West African divisions being considered for disposal. So said Bloomberg, citing people familiar with the matter. Two people who asked not to be identified said the MTN group considers its businesses in Liberia, Guinea, and Guinea-Bissau as ones it could do without.
The review is being led by CEO Rob Shuter, who said in March he planned to evaluate whether the company needs a presence in all 33 markets in which it operates. There was no immediate response from MTN to market speculation, reported Bloomberg.
MTN announced the sale of its Cypriot unit to French billionaire Xavier Niel’s Monaco Telecom on 16 July for about EUR 260 million, the first country exit in the company’s 24-year history. Cyprus had the lowest number of subscribers of all MTN’s markets at the end March, though Liberia and Guinea-Bissau were close. The only other MTN country division with fewer than 1 million customers in South Sudan, which has been engulfed in a civil war since 2013.
The sale of smaller markets could be laying the ground for an attempt to break into Angola, one of the people told Bloomberg. There are plans to sell a minority stake in state-owned telecommunications provider Angola Telecom and hold an auction for a fourth industry operator. Meanwhile, the Ethiopian government is planning to sell parts of the state-owned telecommunications company to foreign investors, opening the door to a market long coveted by MTN and rival Vodacom Group, said Bloomberg.
