MTN in Talks to Sell Their Nigerian Business Tower

It has been announced that Africa’s largest wireless operator MTN Group is in advanced talks to sell its tower business in Nigeria after its first-half profit increased and data revenue soared. MTN plans to sell 8,640 existing Nigeria towers and 543 under development to an entity that would be managed by a large mobile telecommunications infrastructure provider, the company said. MTN has intentions of keeping a non-controlling interest of 51 per cent in the new entity and will enter into a lease agreement for the use of the tower infrastructure. The company is pursuing transformational deals and has overhauled senior management in its fastest growing markets as it seeks to boost smartphone penetration and data revenue outside South Africa, where sales are under pressure from competitors cutting prices and regulators. Their total subscriber base increased from 3.5 per cent to 215 million with 1.7 million net additions in Nigeria, its biggest market with 58.4 million customers. In South Africa, sales declined seven per cent to 19.2 billion rand. An interim dividend of R4.45 was declared. Data sales were boosted by an expanded third-generation network and an increase in smartphone use across the 22 countries in which it operates, moneyweb.co.za quoted MTN’s Chief Executive Officer, Sifiso Dabengwa to have said in the statement. Subscribers to MTN Mobile Money – used for payment in areas where banks are limited – grew by 24 per cent to 18.4 million people. “Voice revenue continued to be impacted by aggressive competition, regulatory pressures and a weakening economic environment in key markets,” Dabengwa said. “MTN Nigeria delivered a robust performance in line with market expectations, however the South African operation remained under pressure and steps were taken to improve its performance,” he added.