Telecom giant dumps 50% stake in Afrihost

folarin okunola

June 27, 2016 4:38 PM

Explaining the decision to sell off its Afrihost stake, MTN said "evolving market circumstances" led to the move, which ultimately led to MTN "reviewing its ownership in Afrihost."

A worker walks past an outlet of South Africa's MTN Group in Johannesburg, South Africa, February 23, 2016. REUTERS/Siphiwe Sibeko/File Photo

Telecom giant, MTN, announced last Friday that it will be dumping its 50% stake in internet service provider Afrihost.

According to HTXT, MTN bought the 50.02% stake in Afrihost back in 2014 for R408million, a move which basically made MTN the owner of the company. However, Afrihost has beeen plagued with complaints and issues with service delivery since the deal was sealed.

MTN explained that the disposal of the stock is “in line with its strategy of focusing on core business and pursuing opportunities in relevant adjacent businesses."

Although MTN only made the move public last week, it is still subject to regulatory approval before the move can pull through.

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“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. As MTN we would like to wish Afrihost well in their business,” said MTN SA CEO Mteto Nyati.

The telecom giant said it doesn't foresee the split having any major effects on its customers, according to the HTXT report.

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