MTN, Africa’s largest wireless operator, has disclosed it is in talks to sell its Base Station Transceiver Stations (BTS/Towers) businesses in Nigeria.
In a statement, at the week, the company revealed about advancement in negotiations to sell its tower business in its operation in Nigeria, that includes 8 640 existing and 543 towers under development, to an entity that will be managed by a large mobile telecommunications infrastructure provider.
However, the Group intends to retain a non-controlling interest of 51% with protective rights in the new entity and will enter into a lease agreement for the use of the tower infrastructure.
The contractual agreements are expected to be finalised in due course and the transaction is expected to close in various tranches under customary closing conditions.
Meanwhile, the statement further showed that the Group witnessed rising profits for the first half of the year and soaring data revenue.
Result of the company’s account showed headline earnings per share, which exclude one-time items, rose 9 percent to 7.29 rand in the six-months through June. Sales grew 11 percent to 72.8 billion rand ($6.8 billion), with data revenue up 39 percent.
An expanded third-generation network and an increase in smartphone use boosted data sales across the 22 countries in which it operates, Sifiso Dabengwa, chief executive officer noted.
Subscribers to MTN Mobile Money, used for payment in areas where banks are limited, grew by 24 percent to 18.4 million people. The shares gained 3.2 percent to 224.50 rand as of 9:44 am in Johannesburg, the biggest intraday rise since Feburary 6.
“Voice revenue continued to be impacted by aggressive competition, regulatory pressures and a weakening economic environment in key markets,” Dabengwa said.
MTN plans to sell 8,640 existing Nigeria towers and 543 under development to an entity that will be managed by a large mobile telecommunications infrastructure provider, the company said. MTN intends to keep a non-controlling interest of 51 percent in the new entity and will enter into a lease agreement for the use of the tower infrastructure.
The Johannesburg based company is seeking transformational deals and has overhauled senior management in its fastest growing markets as it seeks to increase smartphone penetration and boost data revenue outside South Africa, where sales are under pressure from competitors cutting prices and regulators.
Total subscribers increased 3.5 percent to 215 million with 1.7 million net additions in Nigeria, its biggest market with 58.4 million customers. In South Africa, sales declined 7 percent to 19.2 billion rand. An interim dividend of 4.45 rand was declared, up 20 percent.
The company is working closely with relevant authorities in managing U.S. and EU sanctions against Iran, Syria and Sudan it said.