MTN, Africa and Middle East biggest mobile phone operator, has completed the sale of its 100% stake in its Cyprus subsidiary for R4.5 billion (€262 million) as part of an ongoing review of its portfolio.
“Shareholders are advised that this transaction is now concluded for proceeds of R4.5bn (€262m), paid upfront in cash,” the operator ionformed investors on Tuesday.
The South African-based company said the proceeds from the sale will be used towards the settlement of dollar denominated debt.
The subsidiary was 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.
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