MTN announced on Friday, that it had now exited its 18.9% stake in African online retail platform, Jumia, making R2.3 billion in net proceeds.
MTN had earlier said in August that it had filed with the New York Stock Exchange to prepare for a secondary sale of Jumia shares as part of a R25-billion divestment plan aimed at simplifying its portfolio over the next three to five years.
“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,” MTN said.
Jumia became Africa’s first tech firm to list in New York in 2019, when its shares soared to give the company a market valuation of nearly US$2 billion.
However, it has so far failed to make a profit, and its shares have since fallen by two thirds, partly driven by a short-seller casting doubt on its sales figures.
MTN did not disclose what the funds would be used for, but its divestment plans include paying down debt.