MTN: 7,300 -6 (-0.08%)
MTN assigns $231 mln shareholder loan to African phone tower group
JOHANNESBURG, Dec 28 (Reuters) - MTN Group,
Africa's biggest mobile phone operator, said on Thursday it had
assigned a $231 million shareholder loan to phone tower group,
IHS Holding Ltd, impacting its 2017 profits.
MTN, which returned to profit in the first half of its
financial year in the absence of one-off charges related to a
$1.1 billion Nigerian fine, said the assignment of the loan to
IHS will lead to a loss of 2.8 billion rand ($228 million) on
transfer of the carrying value of the loan.
The loss on transfer will impact headline earnings per share
(HEPS) for 2017, the main profit measure in South Africa that
strips out certain one-off items, but not earnings before
interest, tax, depreciation and amortisation (EBITDA), the firm
MTN said the loan, which is due in 2024/2025, will allow its
Nigerian unit to continue to invest in its network and simplify
MTNís interests in IHS.
"The agreement will enable MTN and IHS to mutually benefit
from continued investment and commitment to the rollout of
broadband and data services in Nigeria," MTN said in a
MTN formed a joint venture partnership with specialist tower
company IHS in 2014 to own and operate MTN's transmitter towers
IHS has operations in Nigeria, Cameroon, Cote d'Ivoire,
Rwanda and Zambia.
($1 = 12.2576 rand)
(Reporting by Tanisha Heiberg; Editing by Elaine Hardcastle)
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