MTN Group plans to sell at least half of its $655 million interest in newly listed Jumia Technologies as Africa’s biggest wireless carrier looks to pay down debt and enter new markets.
MTN owns the largest stake in Jumia technologies at 41.4 percent ownership. The Telco intends to sell 19 percent of Jumia after the end of a six-month lock-in period.
A sell-down of the 19 percent stake in the online retailer could happen before the end of the year. Johannesburg-based MTN first needs to wait out a half-year investor lock-in period that followed Jumia’s successful share sale in New York, they said.
MTN is the biggest investor in Jumia, the best performing IPO in New York this year with its share price more than tripling since its 12 April debut.
Yet MTN has earmarked e-commerce assets as not central to the company’s main business of phone and data services and has announced a ZAR 15 billion ($1 billion) disposal plan.
Additionally, other investments that could be sold include interests in flight-booking site Travelstart.co.za and telecommunication masts-operator IHS Towers.
Often nicknamed Africa’s Amazon.com, Jumia operates in 14 African countries including Nigeria and Ivory Coast where the US giant lacks distribution infrastructure and much presence.
Jumia is headquartered in Germany and run by its two French founders, Sacha Poignonnec and Jeremy Hodara.
MTN’s shares have gained almost seven percent since the Jumia IPO, valuing the company at ZAR 194 billion.
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.