MTN Group has completed the sale of its subsidiary, MTN Guinea-Bissau, to Telecel. The deal has been finalized after receiving all the necessary regulatory approvals.
This sale is part of MTN’s strategy to transform its portfolio and is seen as beneficial for MTN Guinea-Bissau and the telecom sector in Guinea-Bissau.
In March 2024, MTN announced it would exit two markets in West and Central Africa, selling its interests in Guinea-Bissau and Guinea-Conakry to Telecel. This followed a sale agreement signed in December 2023.
MTN received an offer of $1 per company for MTN Guinea-Bissau and MTN Guinea-Conakry in October 2023. MTN Guinea-Bissau faced financial troubles, including a $9.3 million loan default and insolvency by December 2023. Both companies were listed as “held for sale” in MTN’s report.
MTN decided to focus on larger markets like Ghana, Cameroon, and Côte d’Ivoire, which contribute more significantly to its revenue. In Ghana, MTN is considered a major market player.
Telecel Global Services received $20 million from the Africa Credit Opportunities Fund and Telecel Group in February 2024 to expand in West Africa. Telecel had previously acquired Vodafone Ghana in February 2023.
Before finalizing the sale, MTN promised a smooth transition for customers and employees and noted that Telecel is well-positioned for growth. MTN Ghana also announced a 31.2% increase in service revenue for the first half of 2024 and is in talks with Telecel for a long-term infrastructure-sharing agreement.
