Consumers value South Africa’s MTN, the continent’s largest mobile phone company, with more than মোবাইল 5 billion worth of mobile money in its hands as it prepares to sell or list minorities to attract global investors to the rapidly growing fintech asset trend.
Chief executive Ralph Mupita told the Financial Times that the unit, which added about 400 million new users last year to a total of more than 46 million, should be at least 5 5 billion to বিল 6 billion, and the group would remove it by next year.
Johannesburg-listed MTN, which has 280 million subscribers worldwide, unveiled plans to re-focus its business and reduce R43bn (3bn) net debt last month.
“We think the best way to run these businesses is to structurally separate them,” he said, adding that the move would unlock the value behind MTN’s ১১ 11 billion market capitalization.
The group wants to tap Investor interest is growing In the mobile money businesses created by African Telecom over the past decade that allow phone customers to send or receive money outside the bank and sell ancillary services such as a growing microinsurance.
MTN’s rival, Airtel Africa, has recently sold its mobile phone business to minorities, valued at more than .6 2.6 billion excluding cash and lud. Rise Fund, the impact arm of buyout firm TPG, and MasterCard bought িয়ন 200 million and $ 100 million, respectively.
Analysts at Renaissance Capital wrote in a recent note, “There must be a price to unlock from telecoms by opening their mobile money business.”
MTN’s mobile money business has more than double the 21-meter Airtel Africa unit. “We think the Airtel Africa transaction will be worth more than $ 5 billion in the fintech business,” Mupita said.
The group’s interest in financial services also includes an insurance joint venture with 10 million customers. Mupita added that their pressure to separate these businesses has become more final as their scale has become “sufficient material”.
The move also anticipates a growing regulatory investigation into Africa’s increasingly complex financial services owned entirely by mobile phone companies. “The discussions we have had with the regulators, they welcome it,” Mupita said.
MTNO is working to raise cash through the sale and leaseback of mobile phone towers to most of South Africa’s groups by the end of the year, and is shutting down the Middle East’s trouble-free activities.
For many investors, MTNK is still seen as a proxy for its single largest market, Nigeria, although it was leaning towards it. B 5bn fine To disconnect millions of unregistered SIM cards imposed by registrars in the country in 2015.
It was later negotiated for 1.5 billion, but the shortage of foreign exchange has also made it difficult to repay dividends in cash.
Despite this problem, “we can control a lot” in Nigeria, a market that contributed about 40 percent of the group’s revenue last year and 12 million of the 29 million new customers added last year, Mupita said. “We think Nigeria is a huge data story,” he said. “There are still low levels of Internet access that we believe we are well positioned to drive higher.”