(Agence Ecofin) – South African telecommunications group MTN has decided to divest its tower operations in Ghana and Uganda. The telecom company will sell its 49% stake in Ghana Tower Interco B.V. and Uganda Tower Interco B.V. to AT Sher Netherlands Coöperatief U.A., a subsidiary of American Tower Corporation, for the sum of 523 million dollars.

MTN explained that through this strategic repositioning, which aligns with the three-year asset divestiture plan valued at 15 billion rands ($1.05 billion), the group wants to refocus on high-growth markets on the continent and in the Middle East.

The sale by MTN Group of its telecom tower operations in Ghana and Uganda is expected to be completed in the first quarter of 2020, enabling the telecom company to generate a profit of $425.74 million which will be used for "the execution of the important strategic priorities of debt reduction, portfolio simplification and risk reduction", the company explained in a press release.

At the helm of MTN Group since 2017, Rob Shuter, the CEO of the telecom company, had launched a company recovery plan focused on various points, including notably the disposal of loss-making assets and the exit from countries where MTN has no prospect of reaching the second market position, as well as investment in high-growth sectors such as data with an emphasis on services such as video streaming, mobile gaming and mobile financial services.

Article source: AGENCE ECOFIN