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MTN plans to dispose of its 50,02% shareholding in internet services provider, Afrihost, in line with its strategy of focusing on core business and pursuing opportunities in relevant adjacent businesses.
The transaction is still subject to regulatory clearances and Competition Commission approval.
MTN acquired its shareholding in Afrihost in 2014. Evolving market circumstances have resulted in MTN reviewing its ownership in Afrihost. As a result, MTN has agreed to dispose of its shareholding to the executive management of Afrihost.
Mteto Nyati, MTN SA CEO, says the disposal will allow both parties to focus their attention on their core businesses.
“We have enjoyed a long and fruitful partnership with MTN over the years and we are grateful for everything they have done for us. MTN will remain a key supplier of ours, and we look forward to continue working with them for the years ahead,” says Gian Visser, Afrihost’s CEO.
“The deal is in line with MTN’s strategy of focusing on core business while exploring relevant adjacent growth opportunities. The conclusion of this transaction will go a long way towards streamlining our operations” says Nyati.
“As MTN we would like to wish Afrihost well in their business,” concluded Nyati.
In line with the spirit of the agreement, MTN expects the development to have minimal impact on its customers.