MTN, Africa and Middle East biggest mobile phone operator, has agreed to sell 100% of its Cyprus subsidiary for R4.1 billion (€260 million) as part of an ongoing review of its portfolio.
The subsidiary will be sold to Monaco Telecom.
Monaco Telecom is the main telecommunications provider in the Principality of Monaco. The company was founded in 1997 following a decision by the government of Monaco to privatize the state-owned Office Monégasque des Téléphones.
The deal will be settled upfront in cash by Monaco Telecom.
In addition, MTN said it has agreed to allow Monaco Telecom to use its brand in Cyprus for up to three years in return for an undisclosed commercial fee.
MTN Cyprus is MTN’s only operating business in the European Union, and was acquired as part of its acquisition of telecoms holding company Investcom LLC in 2006
“It falls outside the group’s core footprint of Africa and the Middle East,” the company informed investors on the JSE.
“The Transaction, which is subject to various closing adjustments, allows MTN to realise an attractive valuation for the asset.”
MTN expects the deal, which is not subject to any completion conditions, to close within the third quarter of 2018.