MTN Group, the largest mobile network in Africa, has reported that the firm has raised $140 million from the sale of its assets in the first half, as a part of a divestment plan that the company had embarked on in the beginning of 2019. The company said that the sales ensure that it’s on track to achieve its $996 million divestment target.
The company had its share of losses in the past few years which forced MTN to take up a divestment plan. African based MTN Group, which has its presence in various countries in Africa, Europe, and Asia, decided to exit from the locations where it cannot attain the first or second place by market shares.
The company has also decided to sell of its e-commerce assets, that have been suffering losses in the recent times.
According to the strategy, the MTN Group has already cut down its stakes in Jumia Technologies, an e-commerce platform, from 29.7 percent to 18.9 percent. It has also sold off its shareholder loan in ATC Ghana to American Tower Corp for SR900 million as well as its interest in Amadeus, an investment fund, and Travelstart, a booking website for SR1.2 billion.
“So we are well on track for our SR15 billion rand target,” chief executive officer Rob Shuter told reporters on Thursday.
MTN had recently hit a rough patch after its earnings dropped by 9.3 percent.
Just as every other mobile networking company, MTN is also keen on widening its services to other digital and financial areas. Shuter has announced the launching MusicTime, a music streaming service in Nigeria by the second half of 2019.
The company has also launched a messaging app Ayoba in small West African Markets, which will be further expanded to bigger markets like Ghana and Nigeria.