SOUTH AFRICA – South Africa’s telecommunication giant MTN has revealed that it has now exited its 18.9% stake in the continent’s online retailer Jumia, making US$ 141m net proceeds from the deal.
MTN said in August it had filed with the New York Stock Exchange to prepare for a secondary sale of Jumia shares as part of a US$1.5 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”
“The group has now fully exited its 18.9% investment in Jumia,” MTN said in a statement.
“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,” it continued.
E-commerce unicorn 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.
But it has so far failed to make profit and its shares have since fallen by two thirds, also partly driven by a short-seller casting doubt on its sales figures.
MTN did not specify what the funds would be used for, but its divestment aims include paying down debt.
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