MTN assigns $231 mln shareholder loan to African phone tower group

0
573

JOHANNESBURG – MTN Group, Africa’s biggest mobile phone operator, said on Thursday it had assigned a $231 million shareholder loan to phone tower group, IHS Holding Ltd, impacting its 2017 profits. MTN, which returned to profit in the first half of its financial year in the absence of one-off charges related to a $1.1 billion Nigerian fine, said the assignment of the loan to IHS will lead to a loss of 2.8 billion rand ($228 million) on transfer of the carrying value of the loan.

The loss on transfer will impact headline earnings per share (HEPS) for 2017, the main profit measure in South Africa that strips out certain one-off items, but not earnings before interest, tax, depreciation and amortisation (EBITDA), the firm said.

MTN said the loan, which is due in 2024/2025, will allow its Nigerian unit to continue to invest in its network and simplify MTN’s interests in IHS.

“The agreement will enable MTN and IHS to mutually benefit from continued investment and commitment to the rollout of broadband and data services in Nigeria,” MTN said in a statement.

MTN formed a joint venture partnership with specialist tower company IHS in 2014 to own and operate MTN’s transmitter towers in Nigeria.

IHS has operations in Nigeria, Cameroon, Cote d‘Ivoire, Rwanda and Zambia.

SHARE
Previous articleSouth Africa’s top court to rule on Zuma impeachment motion Friday
Next articleJTF launch Operation Jagunlabi to check pipeline vandalism in Lagos creeks
Godwin Okafor is a financial journalist, Internet Social Entrepreneur and the Founder Naija247news Media Ltd He has over 16 experiences in journalism, which cuts across traditional and digital media. He started his journalism career in Business Day, Where he was a senior editorial graphic artist, before he left to start Naija247news, An Online Financial Newspaper in 2010. He has won series of awards and he is the chairman of Emmerich Resources Limited, the publisher of Naija247news.com and also sits on the board of Students In Business Awards, (SIBA).

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.