MTN sells Cyprus business to Monaco Telcom for USD304 million

MTN

One of Africa’s telecommunications giants MTN, has sold its Cyprus business for about USD304 million to Monaco Telecom.

“MTN Cyprus is MTN’s only operating business in the EU, and was acquired as part of MTN Group’s acquisition of telecoms holding company Investcom in 2006. It falls outside the group’s core footprint of Africa and the Middle East,” MTN said in a statement on Monday.

The carrier (MTN) has 221 million subscribers across all operations.

MTN Cyprus had 426,000 subscribers at March 31, the group said in a quarterly update released in May.

Monaco Telecom will pay €260m cash, which equates to about R4bn at the R15.47 to the euro the rand was trading at on Monday morning.

The agreement will allow Monaco Telecom continue to use the MTN brand in Cyprus for as many as three years in return for a commercial fee, the statement said.

MTN Cyprus was acquired as part of MTN’s purchase of Investcom LLC in 2006.

The transaction is expected to be completed by the end of September.

Monaco Telecom is the main telecommunications provider in the Principality of Monaco. The company was founded in 1997 following a decision by the government of Monaco to privatize the state-owned Office Monégasque des Téléphones.

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