In a move to strengthen the revenue base of its fintech business, MTN Group Ltd. is making strides in splitting the company’s financial technology unit into a separate company and selling a portfolio of its South African towers.
Johannesburg-based MTN said in a statement on Wednesday that the finalisation of a deal to spin off the promising fintech unit, which includes mobile money, should be completed by the end of March 2022. The company said it has received more than 20 responses for a sale and leaseback of South African telecom masts, which will take place in the third quarter of this year.
MTN is selling properties in order to maximise the value of its pan-African operations. The sale of e-commerce units and the listing of country divisions on local stock exchanges are examples of this. Rwanda was the most recent to list, doing so this week in Kigali.
MTN is interested in expanding in Ethiopia, and it led one of two consortiums bidding for new telecom licences there.