MTN Group has completed the sale of its Guinea-Bissau business unit to Telecel.
In a regulatory filing this week, MTN confirmed it had concluded its exit from the market.
The telco announced it had accepted an offer to sell the unit to Telecel earlier this year.
South African carrier MTN said in March that it is withdrawing from smaller markets to invest in digital platforms and fintech offerings.
The financial details of the transaction have not been disclosed. However, earlier this year MTN said it expects the sale will generate between ZAR 7 billion ($369 million) and ZAR 8 billion ($422 million) in savings for the company over the next three years.
An exit from Guinea was suspected when reports in December signaled that MTN’s headquarters in the country had been closed by the Post and Telecommunications Regulatory Authority over unpaid taxes and fees. The company’s end-of-year financial report also suggested a deal had been struck with Telecel, subject to terms and conditions.
MTN is currently the second largest telco in Guinea with around 24 percent market share, behind Orange with 69 percent. However, Guinea-Bissau and Guinea-Conakry contribute to less than 1.6 percent of MTN’s overall revenue.
Telecel, founded in 1986, is an African-focused telecommunications provider that operates across much of the continent, including South Africa, Ivory Coast, Nigeria, Kenya, and Senegal. Last year, the company acquired Vodafone’s majority stake in the Ghanaian market.
Earlier this week, MTN Group revealed it had renewed a tower lease for its Nigerian business with IHS Towers.
