MTN acquires licenses in Ivory Coast and Ghana for $196 million

18 Dec 2015
Chibuike Oguh

Summary

MTN paid $124 million to renew its operating license in Ivory Coast, where it has 8 million subscribers, for 17 years.

MTN Chairman and Interim CEO Phuthuma Nhleko

MTN Group, Africa’s largest mobile operator, has acquired operating licenses in the West African countries of Ivory Coast and Ghana for $196 million.

The South African company paid $67.5 million for a 15-year 4G/LTE license in Ghana, where it has 15 million subscribers. A 4G/LTE license would enable MTN roll out high-speed data services.

According to a statement released on Johannesburg Stock Exchange (JSE), MTN paid $124 million to renew its operating license in Ivory Coast, where it has 8 million subscribers, for 17 years. The fee is 75 percent of the cost of renewing the license, but above the required 50 percent down payment due on December 15th.

MTN has been battling with a $5.2 billion fine imposed on its Nigerian unit by the Nigerian Communications Commission for failing to disconnect 5.2 million unregistered phone lines.

Intense lobbying by MTN executives persuaded the NCC to slash the fine by 25 percent to $3.9 billion. MTN must pay the fine by year-end.

In the aftermath of the fine, MTN’s share price crashed by more than 20 percent and several executives have resigned, including former group CEO, Sifiso Dabengwa.

However, Reuters reports that MTN shares jumped by 7.6 percent to 139.92 rand on the JSE after news of the license acquisitions were announced on Thursday, December 17th.

MTN operates in 22 countries in Africa and the Middle East, with over 230 million subscribers.


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