Business Maverick: MTN Taps JPMorgan to Separate Fintech Unit

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MTN Group Ltd., Africa’s largest phone company, is working with advisers at JPMorgan Chase & Co. on the planned separation of its financial technology business, people with knowledge of the matter said.

MTN is studying a variety of potential deals, including bringing in partners for some of its businesses as well as possibly listing certain units in the future, to unlock value and pay down debt. The carrier is also exploring options for its data center business, the people said, asking not to be identified because the information is private.

The telecom carrier is separately working with FTI Consulting Inc. to find ways to boost revenues from its wholesale business and roaming agreements across the markets where it operates, one of the people said. Shares of MTN have roughly doubled in Johannesburg over the past 12 months, giving the company a valuation of about $22.3 billion. Deliberations are ongoing, and there’s no certainty they will lead to any transactions, the people said.MTN said in 2020 it targets to raise 25 billion rand from asset disposals over the medium term. It agreed in November to sell a portfolio of wireless towers in its home market of South Africa for 6.4 billion rand.

 

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