Following regulatory permission, MTN Group, Africa’s largest telecom company by subscriber base, has completed the sale of its Guinea-Bissau business to Telecel, a company located in Mexico. The transaction is a component of MTN’s goal to exit more petite West and Central African regions, which, according to the company’s 2023 annual results, only made up 7.3% of its revenue.
A legally binding offer to sell MTN Guinea-Bissau and MTN Guinea-Conakry for $1 for each company was made to MTN in October 2023. On December 15, 2023, MTN and Telecel inked a sale and purchase agreement; the transaction is pending regulatory approval.
Read also: MTN Nigeria renegotiate agreements with IHS, INT
MTN Guinea-Bissau encountered financial difficulties after violating the terms of an R171 million ($9.3 million) loan with an unidentified lender. Its liabilities of R802 million ($43.6 million) exceeded its assets of R619 million ($33.7 million), causing it to become insolvent in December 2023.
The company informed shareholders on Wednesday that “MTN has taken steps to ensure a seamless transfer of ownership, which the Group believes is in the best interests of MTN Guinea-Bissau, its stakeholders and the sector in Guinea-Bissau at large.”
MTN will focus on larger West African markets like Ghana, Cameroon, and Cote d’Ivoire, which, according to 2023 annual results, contributed 19% of the pan-African telco’s income.
About Telecel Group
The Telecel Group is a global innovator and telecommunications firm operating in over 20 countries. The Telecel Group is involved in four distinct business lines, all of which fall under the telecom sector: Owning and running multiple mobile operators in Africa is Telecel Mobile; Telecel Global offers a wide range of services, including VOICE, SMS, DATA, IPTV, international traffic, and VAS while Telecel.AI is an Africa Startup initiative program which seeks out and supports creative African-related startups.
Read also: NCC directs telcos to maintain tariff transparency
About MTN Group
With the strategic goal of “Leading digital solutions for Africa’s progress,” MTN is a pan-African mobile provider. It is driven by the conviction that everyone should be able to enjoy the advantages of a contemporary, connected life. MTN has 295 million users across 19 markets.
Motivated by Africa’s potential, they are dedicated to using their core business operations and support for communities, governments, and consumers to advance financial inclusion, close the digital divide, and help achieve the United Nations’ Sustainable Development Goals.
As a leader in transformation, they were founded in 1994 at the outset of democracy in South Africa. To provide services to communities in Africa and the Middle East, they have expanded since then by making investments in cutting-edge communication infrastructure, creating new technologies, and utilising the creativity of their varied workforce.