Telecoms giant, MTN, is planning to sell half of its its $655 million interest in Jumia to raise money to pay down debs and enter into new markets.
According to Bloomberg, a selldown of the 19 percent stake in the online retailer could happen before the end of the year. However MTN will have to wait for 6 months which is the lock-in period following Jumia’s successful share sale in New York.
“We have a six-month lock-up period where we can’t sell our shareholding,” an MTN spokesman said. “Post that period we will apply our minds on what to do with the investment.”
Though MTN is the biggest investor in Jumia, the telecoms company is intent on disposing some of its assets. Earlier this year, the company started a 15 billion-rand ($1.1 billion) disposal plan to shore up the balance sheet.
The company agreed to sell its 53 percent stake in Botswana’s Mascom to Econet Global Ltd. for $300 million and this has been concluded. Other businesses now on the market include Travelstart.co.za and telecommunication masts-operator IHS Towers Ltd.
