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MTN GROUP LIMITED - MTN sells 100% of MTN Cyprus to Monaco Telecom for approximately R4,1bn

Release Date: 16/07/2018 07:30
Code(s): MTN     PDF:  
Wrap Text
MTN sells 100% of MTN Cyprus to Monaco Telecom for approximately R4,1bn

MTN Group Limited
(Incorporated in the Republic of South Africa)
Registration Number 1994/009584/06
Share code: MTN
ISIN: ZAE000042164
("MTN")

MTN sells 100% of MTN Cyprus to Monaco Telecom for approximately
R4,1bn

MTN Dubai Limited, a wholly owned subsidiary of MTN Group, has entered
into an agreement in which it has sold 100% of MTN Cyprus to Monaco
Telecom S.A. (“Monaco Telecom”) (the “Transaction”) as part of an
ongoing review of its portfolio. The net sale proceeds of €260 million
(approximately R4,1 billion) will be paid upfront in cash. The
Transaction values MTN Cyprus at approximately 8x reported 2017
EBITDA.

In addition, MTN has agreed to allow Monaco Telecom to use the MTN
brand in Cyprus for up to three years in return for a commercial fee.
MTN Cyprus is MTN’s only operating business in the European Union,
and was acquired as part of MTN Group’s acquisition of telecoms holding
company Investcom LLC in 2006. It falls outside the group’s core
footprint of Africa and the Middle East. The Transaction, which is
subject to various closing adjustments, allows MTN to realise an
attractive valuation for the asset.

MTN expects the Transaction, which is not subject to any completion
conditions, to close within the third quarter of 2018.

The accounting effects of the Transaction will be communicated with
the 2018 interim results that will be released on 8 August 2018.

The Transaction does not classify as a categorised transaction as
per the JSE Listings Requirements.

Exchange rates as at 11/7/2018 translated at R15.79: €1. Transaction amounts agreed
in euros so rand amounts subject to forex movements.


Fairland
16 July 2018

Sponsor
Deutsche Securities (SA) Proprietary Limited

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