MTN to raise R25bn through sale of assets

JOHANNESBURG – Mobile operator MTN said yesterday that it aimed to raise a further R25billion through the sale of non-core assets over the next three to five years in an effort to simplify its portfolio and improve return on equity to about 20percent from 13percent in 2019.

Chief executive Rob Shuter said the group had identified R45bn in non-core assets, and was targeting sales in the medium term, which would contribute to reducing the holding company’s leverage target ratio to below 2 times from the previous guidance of between 2 and 2.5 times.

“So why are we doing this? We want to simplify the portfolio, reduce risk, improve returns and, of course, it will be very valuable to bring down our leverage ratios for the future,” said Shuter.

Shuter told the group’s annual results presentation in Johannesburg yesterday that the R25bn asset realisation programme was on the back of MTN delivering R14bn realisations within the first year of its three-year R15bn target announced last year.

MTN sold its 49percent stake in Ghana and Uganda Tower Company for R14bn. It also disposed of its stakes in Amadeus and Travelstart.

Source: iol.co.za