MTN revealed it accepted an offer from Telecel to sell its units in Guinea-Bissau and Guinea-Conarky, as part of its portfolio optimisation strategy.
In MTN’s 2023 financial report, the operator detailed the deal was struck with Telecel in December 2023 but is still subject to further conditions.
“Telecel is well positioned to drive the growth and further development of these operations and contribute to technological and economic progress in these markets,” said MTN.
As of 31 December 2023, MTN Guinea-Bissau’s accumulated foreign currency translation reserve (FTCR) gain was ZAR277 million (US$14 million) and MTN Guinea-Conakry’s accumulated FCTR loss was ZAR1.7 billion (US$36 million).
MTN is currently enacting its strategy to minimise its portfolio with exits from smaller markets and invest in digital platforms and fintech offerings, to tap into rising mobile data usage across its 19 markets in Africa and the Middle East.
The company aims to gain in the medium term between ZAR7 billion (US$369 million) to ZAR 8 billion (US$422 million) in expense efficiencies over the next three years.
MTN revealed in its 2023 results that the devaluation of the Nigerian naira almost wiped out profits, and expects currency volatility alongside inflation, to be key challenges for the group in 2024.
MTN Guinea was reportedly forced to shutter over unpaid licenses.
