MTN Group plans sale, leaseback of 13000 South African towers

MTN Group is looking to sell and lease back part of its portfolio of 13,000 South African telecom towers, Bloomberg reported.

It said this is a sign that new CEO Ralph Mupita seeks to build on a disposal plan begun by his predecessor. Mupita said MTN is considering the strategic and financial merits of the plan, which would build on similar transactions MTN has completed in countries such as Ghana and Uganda.

When Rob Shuter was its CEO, MTN started a plan to raise ZAR 15 billion to help pay down debt, completing the project earlier this year.

MTN then announced an intention to exit the Middle East, with talks under way to sell its Syria operation.

The company recently generated about ZAR 2.3 billion from the disposal of a minority stake in e-commerce group Jumia. Mupita, the former chief financial officer, took over from Shuter on 01 September.

Other potential sales for MTN include its interest in IHS, Africa’s biggest tower operator, although plans for an initial public offering in New York have been pushed into next year, people familiar with the matter told Bloomberg in October.