MTN looking to sell units in Syria, Yemen and Afghanistan

South Africa’s MTN Group has confirmed that it is in ‘advanced talks’ to divest its roughly 75% stake in MTN Syria and is planning to dispose of its operations in Afghanistan and Yemen next.

Explaining the decision, the MTN CEO Rob Shuter was quoted by Bloomberg as saying that operations in the region were becoming ‘increasingly complex’ and contributing less to the group’s earnings.

 ‘We used to say that the conflict markets were not consuming any of our capital and could still be good contributors if the situation turned around,’ the official was quoted as saying, adding that, due to currency devaluations ‘they have become small in our lives, but could be significant in the hand of another company’.

The ongoing conflicts in the three markets have made continuing operations challenging, and the company has faced a litany of accusations and controversies regarding its businesses in the region.

The CEO dismissed the suggestion that a US court case against MTN Afghanistan was the catalyst for the sale, and looked to assure shareholders by clarifying that the move ‘is not a fire sale. This will be done in a very orderly and responsible way over the next few years.’