Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Business of Tech

MTN selling BICS stake for $121 million

Article Image
Pan-African mobile operator MTN has agreed to sell its 20% stake in carrier business Belgacom International Carrier Services SA (BICS), for R1.8 billion (US$121 million).

MTN had already alerted the market to the possibility of a sale during its interim financial results in 2020. MTN even classified the BICS investment as a non-current asset held for sale in August last year.

Now it says it has concluded an agreement to sell the 20% shareholding in the communications enabler to Belgian operator Proximus and fully exit the business.

The sale is part of MTN's ongoing asset realization program (ARP), which it says "aims to reduce debt, simplify its portfolio, reduce risk, improve returns and unlock value."

Light Reading reported that Swisscom is also selling its 22.4% stake in BICS to Proximus which will now own 100% of BICS. The combined stake sales total about €217 million ($262.6 million).

BICS has had a tough time of late with its business hurt by falling roaming revenue during the COVID-19 pandemic and a continued decline in international voice revenue in general.

MTN said the timing of the closing of the deal is still dependent on customary regulatory approvals.

"Once all the conditions precedent have been fulfilled, MTN will receive proceeds of approximately €100 million (R1.8 billion) in cash, which the Group intends to use to pay down US dollar debt and for general corporate purposes," it said in a statement on Tuesday.

Related posts:

— Paula Gilbert, Editor, Connecting Africa

Innovation hub

Story

MTN tackles SA power woes with wind & solar hybrid project

MTN South Africa has launched an integrated wind and solar renewable energy generation project as part of its Net Zero efforts.

Video

Interview: Qualcomm execs on mentorship for African startups

Qualcomm Technology VP for Engineering, Sudeepto Roy, and Elizabeth Migwalla, VP for Government Affairs, join Connecting Africa for a video interview about Qualcomm's Make in Africa Mentorship Program.

More Innovation hub

Latest video

More videos

Sponsored video

More videos

Industry announcements

More Industry announcements

Flash poll

All polls

Africa Tech Perspectives

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

Story

Challenges and opportunities for women's tech careers

A new survey reveals that COVID-19, the cost-of-living crisis, skills shortages and a lack of mentorship have negatively affected women's career development over the past two years.

Story

Survey: Opportunities for Women in Tech

Take our new survey for women across Asia, Europe and Africa looking at the biggest challenges and opportunities for women-led enterprises and trends in tech careers for women.

More AfricaCom perspectives

Upcoming events

London Tech Week
June 13-16, 2023
Queen Elizabeth II Centre, Broad Sanctuary, London SW1P 3EE
Cybertech Africa 2023
August 1-2, 2023
Kigali Convention Center, Kigali, Rwanda
Africa Tech Festival, Home of AfricaCom and AfricaTech
November 13-16, 2023
CTICC, Cape Town
More Upcoming events

Guest Perspectives

Story

Omdia View: February 2023

By Omdia Analysts

In February 2023 key events in the Middle East and Africa included a major Internet project for Africa's underserved by Liquid Intelligent Technologies and Microsoft as well as a 5G launch in Tanzania – that and more in this month's Omdia View.

Story

Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up