MTN Sells its Shares in Jumia for $142Million

South African telecommunications giant, MTN Group on Friday, October 30, 2020, made it known that it had loaded off its stake in Jumia, one of Africa’s largest eCommerce platforms.

MTN says it’s making a net proceed of $142.31 million dollars from the sale.

MTN stated that it had filed with the New York Stock Exchange (NYSE) earlier on in August to get its secondary sale of Jumia shares started, as part of a its corporate divestment strategy aimed at simplifying its portfolio over the next three to five years.

“The group has now fully exited its 18.9% investment in Jumia,” a statement from MTN said.

“We are proud to have been a partner in the evolution of one of Africa’s pioneering online marketplace businesses and will continue our relationship with Jumia through ongoing operational partnerships in some markets,” it continued.

Jumia is so far yet to turn a profit, and its shares have since fallen by two thirds, also partly driven by a short-seller casting doubt on its sales figures.

Even though MTN did not specify what the funds gotten from the shares liquidation would be used for, but it is speculated that it would be used in paying down some corporate debt.

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Random African loves writing about the African continent. He is consistently in touch with happenings in every part of the continent and derives joy from providing fresh and crisp information for his audience.

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