Jumia – the largest e-commerce operator in Africa – was floated on the New York Stock Exchange(NYSE) on April 2019 and MTN is a significant shareholder.
MTN – Africa’s largest mobile phone operator, owns 18.9% stake in Jumia.
The stake is worth more than Clientele’s entire market value on the JSE, which is R5.1 billion.
“Following the Jumia IPO and making reference to the NYSE share price of the business at the end of the period (30 June 2019), we now value our 18,9% stake at R5,5 billion at an American Depositary Share (ADS) price of $26,42,” MTN informed investors on Thursday.
“As at 6 August 2019 the Jumia ADS price was at $13,81.”
Founded in 2012, Jumia started a mission to improve the quality of everyday life in Africa, by leveraging technology to deliver innovative, convenient and affordable online services to consumers.
Jumia further empowers businesses to grow, by using its platform to reach and serve consumers across the continent.
It is currently active in 14 African countries with more than 81,000 active sellers transacting online with millions of consumers. The e-commerce platform directly employs more than 5,000 team members in Africa.
Meanwhile, MTN also informed investors that Middle East Internet Holding (MEIH) disposed of online platform Wadi, simplifying the portfolio and reducing ongoing capital requirements.
MTN reported that its ride-hailing service Jeeny recorded a 75%increase in ride numbers and bookings on cleaning service app, helping increased by 54%.
As of 30 June 2019, an impairment of R191 million was recognised for MEIH.
Within IIG, ride-hailing app Snapp recorded 2 million rides daily, ranking it among the top ride-hailing apps globally.
The company further stated that its Iranian food delivery app Snappfood grew by 197% and led the market with almost 80% market share.
Iran’s Snapptrip grew by 116% and is number 1 in the local hotel booking market. Snapptrip offers discounted hotel prices and lets you compare different options to choose the best one for yourself.
“As MTN re-focuses its business on building an integrated digital operator, these e-commerce holdings, while important investments are not viewed as long-term strategic holdings for the group,” the company said.