MTN completes sale of ATC joint ventures for $85 million
Subsequent to MTN Group’s announcement on 11 March 2020 reporting its 2019 annual results and the conclusion of the disposal of its stake in ATC Uganda for R2,2 billion, approximately $85 million, the telco has confirmed that regulatory approvals have now been received for the disposal of its stake in ATC Ghana.
MTN is due to receive further transaction proceeds of approximately $384 million (R6,7 billion, based on an exchange rate of R17,4:$1) in the next week. This takes the total proceeds received for the disposal of both ATC Uganda and ATC Ghana to R8,9 billion, which will be applied to paying down US-dollar debt and general corporate purposes.
On completion, the Group will have realized R15.0 billion within the first 12 months of its initial three year ARP. Consequently, MTN has enhanced its ARP guidance framework to a target of atleast R25 billion in further asset realisations over the medium-term (3-5 years), and a holding company leverage target ratio of below 2,0 times.
MTN has strengthened its operational and financial position is well-placed to weather the prevailing turbulent macroeconomic environment. The Group remains focused on its strategic execution and committed to its clearly-defined and disciplined capital allocation framework.
MTN declared a final dividend of 355 cents per share on 11 March 2020, bringing the total dividend to 550 cents per share for the 2019 financial year.