On Friday October 30, 2020, MTN announced the sale of its 18.9% stake in Jumia, a deal which earned the telecom giant in the excess of UGX533b (US$142.31 million).
According to MTN, the move to sell off the stake is part of its ongoing efforts to streamline the Group portfolio as well as minimize debt through disposal of non-core businesses.
“We are proud to have been a partner in the evolution of one of Africa’s pioneering online marketplace businesses and will continue our relationship with Jumia through ongoing operational partnerships in some markets,” MTN said in a statement.
MTN initially had a 40% stake in Jumia which dropped gradually to 31.28%, and then 18.9% by the end of 2019. All things considered, we estimate the value of MTN’s sale to be between $250 million – $255 million.
The continent’s largest mobile operator, is in the process of consolidating its mobile technology assets to focus on the African market, which has been its stomping ground for years.
How Ecobank is Betting on Inclusive, Tech-Powered Learning in UgandaJumia is listed on the New York Stock Exchange and operates in 14 African countries and is considered a market leader in e-commerce, with a market capitalisation of $1.3 billion.
Focusing on Africa
In August this year, MTN announced that it would begin its exit the Middle East by selling its 75% stake in Syria to Romanian technology investment company TeleInvest, a process expected to take between three to five years. The telecom is also considering disposal of a stake in Iran’s ride-hailing app Snapp.
