To view the PDF file, sign up for a MySharenet subscription.

MTN GROUP LIMITED - MTN Significant Progress in MTNs Asset Realisation Programme

Release Date: 02/01/2020 15:35
Code(s): MTN     PDF:  
Wrap Text
MTN Significant Progress in MTN’s Asset Realisation Programme

MTN Group Limited

(Incorporated in the Republic of South Africa)

Registration Number 1994/009584/06

Share code: MTN

ISIN: ZAE000042164

("MTN”)

Significant Progress in MTN’s Asset Realisation Programme

MTN announced its Asset Realisation Programme (“ARP”) in March 2019 which aims to reduce debt,
simplify its portfolio, reduce risk, improve returns and realise capital of at least R15 billion over three years
(excluding the IHS investment). MTN is pleased to announce the conclusion of two important transactions
reflecting the ongoing progress of this programme.

Firstly, and further to MTN’s quarterly update for the period ended 30 September 2019 announcement
released on 31 October 2019, MTN has concluded an agreement to dispose of its 49% equity holdings in
Ghana Tower Interco B.V. (“Ghana Interco”) and Uganda Tower Interco B.V. (“Uganda Interco”) to AT Sher
Netherlands Coöperatief U.A. (“ATC”) for $523 million, approximately R7.3 billion, in cash.

The sale is conditional on customary regulatory approvals and is expected to close in Q1 2020. On closing
MTN will record a profit on disposal of approximately R6 billion.

Secondly, as part of the ARP, the redemption of MTN Nigeria preference shares was envisaged as a
necessary part of the simplification of its capital structure.

MTN hereby confirms that the necessary processes have been finalised for the redemption of MTN
Nigeria preference shares for a consideration to MTN of US$315 million (approximately R4,4 billion),
which was received on 31 December 2019.

Following the completion of these transactions, MTN will have realised approximately R14 billion within
the first 12 months of its guided three-year ARP. MTN intends to use the proceeds to pay down US$ debt
and for general corporate purposes. We remain focused on continuing to execute on the important
strategic priorities of reducing debt, simplifying the portfolio and reducing risk.


Note: Assuming FX rate of R13.98:US$

About Ghana Interco and Uganda Interco

Ghana Interco and Uganda Interco were formed when MTN sold its towers in Ghana and Uganda to
its joint ventures with ATC in 2011 and 2012 respectively.

MTN holds 49% in Ghana Interco and Uganda Interco, and each of these companies hold 100% in ATC
Ghana Limited and ATC Uganda Limited respectively, which in turn own and lease tower assets in their
respective countries.


Fairland

2 January 2020

Lead sponsor

Tamela Holdings Proprietary Limited

Joint sponsor

J.P. Morgan Equities Proprietary Limited

Date: 02-01-2020 03:35:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story