MTN Group has successfully completed the sale of its West African subsidiary, Spacetel Guinea-Bissau S.A. (MTN Guinea-Bissau), to Telecel Group Mobile Limited. This move aligns with MTN’s strategic objective of accelerating portfolio transformation and streamlining its operations. The sale has been finalized after receiving all necessary regulatory approvals, marking a significant step in the group’s restructuring efforts.
The sale of MTN Guinea-Bissau is part of MTN Group’s broader strategy to optimize its portfolio. Earlier this year, MTN Group CEO Ralph Mupita indicated that the company was focusing on exiting its Middle Eastern operations, following the sale of MTN Afghanistan. The successful completion of the Guinea-Bissau transaction reinforces MTN’s commitment to refining its regional presence.
In addition to the Guinea-Bissau sale, MTN Group has renegotiated its tower leasing agreements with IHS Nigeria. The revised terms, effective from April 1, 2024, extend the master lease agreements to December 31, 2032. These amendments aim to reduce the US dollar-indexed lease components and incorporate more naira-linked terms, helping to mitigate macroeconomic risks and support margin recovery.
The renegotiation also introduces an energy cost component tied to diesel power costs, along with discounts and incentives over the contract’s lifespan. This restructuring is designed to alleviate financial pressures and support MTN Nigeria’s operational efficiency and financial health.
Additionally, MTN Nigeria has reached a revised agreement with ATC Nigeria and IHS Nigeria regarding the management of approximately 2,500 tower sites. Under the new terms, ATC will handle around 2,100 sites, while IHS will manage approximately 1,400 sites, including 1,000 new sites to be deployed in the coming years.
These strategic moves reflect MTN Group’s ongoing efforts to enhance operational efficiency, optimize its portfolio, and adapt to the evolving telecommunications landscape across its markets.
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