The end of schmuck equity in Africa
MTN Group selling down its stakes in JVs with American Tower in Ghana and Uganda mark the end of an era
In addition to announcing the closure of its Eaton Towers’ acquisition, on the 2nd January 2020 American Tower announced it had agreed terms to buy-out MTN’s minority stakes in its joint venture towercos in Ghana and Uganda. American Tower will pay approximately US$523mn for MTN’s 49% stakes in each of the joint ventures. The transaction is expected to close in the first quarter of 2020, subject to regulatory approval, and will result in a one-time impact for American Tower of approximately US$65mn in 2020 from the payment of previously deferred cash interest related to joint venture debt.