Mobile network giant MTN is selling its R1.8 billion stake in Belgium based telecommunications provider Belgacom Internaitional Carrier Services SA (BICS).
The disposal is part of MTN’s three year asset realisation programme (ARP) to simplify its portfolio, raise R15 billion in proceeds and reduce its debt. It has raised R14 billion through the ARP so far.
On Tuesday the group announced that it was selling the 20% stake to Belgium’s largest telecoms company, Proximus Group, which is also BICS’ parent.
"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," MTN said in its statement.
The group has already made disposals of some of its businesses in Ghana, Botswana, Uganda and completed the redemption of its preference shares in Nigeria.