MTN Group has completed the sale of its West African subsidiary, Spacetel Guinea-Bissau, to Telecel Group Mobile Limited after receiving all necessary regulatory approvals.
In March 202, MTN revealed that it would be exiting two markets in West and Central Africa (WECA), agreeing to sell its equity interests in Guinea-Bissau and Guinea-Conakry to Telecel Group, following a sale and purchase agreement in December 2023. The decision to exit Guinea-Bissau and Guinea-Conakry comes in the wake of poor financial performance in MTN Guinea-Bissau, attributed to a breach in R171 million ($9.3 million) loan with an undisclosed lender..
The company emphasized that it has taken steps to ensure a smooth transfer of ownership, which it believes is in the best interests of MTN Guinea-Bissau and its stakeholders.
MTN Group CEO Ralph Mupita previously indicated that this sale is part of a broader effort to streamline operations, following the recent sale of MTN Afghanistan.
The telco decided to focus on its larger regional markets, such as Ghana, Cameroon, and Côte d’Ivoire, which collectively added more than 18% to the group’s revenue compared to other markets.
Additionally, MTN Nigeria has successfully renegotiated its tower leasing agreements with IHS Nigeria, extending contracts to 2032 and adjusting terms to reduce currency risks and support margin recovery.
