One of Africa’s largest telecommunications company, MTN Group, plans to sell approximately half of its ownership in E-commerce firm – Jumia technologies. Sources familiar with the matter told Bloomberg that MTN aims to use the funds to pay the debt and expand to new markets.
MTN owns the largest stake in Jumia technologies at 41.4 per cent ownership. The Telco intends to sell 19 per cent of Jumia after the end of a six-month lock-in period.
According to an MTN spokesperson, Jumia investors are required not to sell their investment for six months from the time of listing at the New York Stock Exchange.
“We have a six-month lockup period where we can’t sell our shareholding,” the spokesperson said.
MTN is selling off its investments in E-commerce companies such as Jumia and Travelstart all valued at $1 billion (~KSh101 billion). The sell-off is due to MTN’s decision to divest from companies not aligned to its primary business of ‘phones and data services.’
Since Jumia listed at the NYSE on 12th April, MTN’s shares have gained 7 per cent in value to reach a market valuation of 194 billion rand (~KSh1.35 trillion).