MTN Group is selling 49% of its tower businesses in Ghana, Uganda, here’s why

MTN Group says it is selling 49% of its tower businesses in Ghana and Uganda.
The group says a subsidiary of American Tower Company is buying the tower for $523 million.
The Group President and CEO Rob Shuter said the transaction is expected to close in Q1 2020.

According to the group, the tower businesses is being sold to a subsidiary of American Tower Company for $523 million.

MTN said this in a statement it issued to the public and was signed by the Group President and CEO Rob Shuter.

The statement said “Firstly, MTN has concluded an agreement to dispose of its 49% equity holdings in the Ghana and Uganda Tower Company investments to a subsidiary of American Tower Company for $523 million, approximately R7.3 billion. This transaction is expected to close in Q1 2020.”

The telecoms giant announced its Asset Realisation Programme (“ARP”) in March 2019 which aims to simplify its portfolio, reduce debt and risk, improve returns and realise proceeds of at least R15 billion over three years.

Mr Shuter added that “Following the completion of these transactions, MTN will have realised proceeds of approximately R14 billion within the first 12 months of this program. Realising proceeds from simplifying the group remains a major strategic objective, and we expect further progress in this program in 2020.”