The African largest wireless company, MTN, has sold two of its business units in West Africa to the upcoming wireless company Telecel. The new wireless company Telecel, also acquired Vodafone Group’s businesses in Ghana earlier last year as it gears towards its IPO in 2027.
In an interview with Bloomberg regarding the acquisitions, the Telecel CEO Moh Damush, stated that the company was buying out MTN’s debt and equity in the region. However, he failed to disclose the actual debt size his company had just bought.
According to speculators, the acquisition was foreseen as Telecel raised $20 million in February from a private credit fund called the Africa Credit Opportunities Fund. The raise was initialized to help the Telecel group outreach in West Africa, which it is doing currently.
In 2017, Damush, and his partners Nicolas Bourg and Hugues Mulliez, acquired Telecel for an undisclosed amount and have since shown interest in multiple products and markets such as Central Africa Republic, Liberia, and Ghana.
A decision was made in line with its aim of listing its IPO in London and Dubai, where the company sees a possibility of significant development.
Telecel is looking at two other prospects on the continent and the next round of acquisitions will focus on financial services and tech companies that can add value to our investments.
Telecel CEO Moh Damush
It is all about profit for MTN
The reason MTN agreed to release its equity in the region is that the company has been passing through some dark turns in recent times, crossing the red line on multiple occasions.
Currently, the MTN Group is focused on exiting smaller markets in the West and Central Africa region.
According to the 2023 financial reports, the Guinea-Bissau and Guinea-Conakry business units have been up for sale since December 2023. A move by the telecom giant to enable it to direct its attention towards larger markets in the West and Central Africa region.
MTN is on the verge of internal collapse if extreme measures are not taken as the company had a rough 2023 in Nigeria, which was marked by the fastest and highest currency devaluation rate, foreign exchange shortages, and inflation.
Currently, the telecom giant has started its plans geared towards profitability and the sale of its business units in West Africa is one of them.