MTN Group, Africa’s largest telco by subscriber base, has concluded the sale of its Guinea-Bissau subsidiary to Mexico-based Telecel for following regulatory approval. The deal is part of MTN’s strategy to divest from smaller West and Central African markets which only contributed 7.3% to the company’s 2023 revenue. per 2023 annual results.
In October 2023, MTN received a binding offer for the sale of both MTN Guinea-Bissau and MTN Guinea-Conakry for a consideration of $1 for each of the companies. MTN and Telecel signed a sale and purchase agreement on 15 December 2023, with the deal subject to regulatory approval.
MTN Guinea-Bissau faced financial struggles after breaching a R171 million ($9.3 million) loan with an undisclosed lender. It became insolvent in December 2023 after its liabilities of R802 million ($43.6 million) surpassed its assets of R619 million ($33.7 million).
“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 told shareholders on Wednesday
MTN will focus on larger West African markets including Ghana, Cameroon, and Cote d’Ivoire which accounted for 19% of the pan-African telco’s revenue per 2023 annual results.
