MTN Group To Engage Bankers For Sale Of South African Telecom Towers - Reports
According to industry sources, MTN Group is reported to have appointed South African based Standard Bank Group and Citigroup to advise it on the proposed "sale and leaseback" of some of its mobile telecommunications towers in South Africa.
Reporting by TechCentral, a South African industry news outlet, suggests that MTN is looking to raise between ZAR5-10 billion (US$ 400 - 750 million) from the offload or leaseback of the towers once it is all said and done. Sources close to the deal are quoted as saying that MTN would be looking to sell to specialist tower companies across the continent.
It is noteworthy that active tower companies in Africa such as IHS Holding and America Tower Corporation have been expanding their operations and footprints across Africa as they look to take advantage of the burgeoning smartphone led broadband and data services.
Sources close to the plan say that MTN is yet to finalise or settle the timing or the scope for the proposed transactions. Still, it is generally agreed that the sale of some of its tower portfolio, though to be in the region of 13,000 units could contribute a couple of billion dollars (US) to the company's coffers. MTN, it must be said, had previously exited tower business in Uganda and Ghana.
Credit: contribution from techcentral.co.za