The disposals will be done in a phased manner, with its three consolidated subsidiaries in Yemen, Afghanistan and Syria earmarked to be sold first.
MTN Group Ltd. plans to exit the Middle East as Africa’s biggest wireless carrier changes focus to its home continent.
The Middle East “environment is becoming increasingly complex and it contributes less to the group’s earnings,” CEO Rob Shuter said Thursday.
The South African operator is used to working in certain risky markets, which in some instances has left it vulnerable to legal entanglements, unpredictable politics and regulatory crackdowns. In Iran, the company has been involved in a years-long legal battle over a telecom license, although no claims have succeeded. In Afghanistan, MTN moved to get claims dismissed that it was involved with payments to the Taliban to protect its infrastructure.
While this adds to the complexity of operating in these markets, the real issue is the economics of the businesses, Shuter said in an interview.
“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,” he said. Due to currency devaluations “they have become small in our lives, but it could be significant in the hand of another company,” he said.
