JSE-listed mobile telecommunications group MTN is increasing its stake in its Cypriot operation from 50% to 100% by buying out its partner, Amaracos Holdings.
The acquisition, the value of which has not been disclosed, will be done through MTN’s wholly owned subsidiary in Dubai.
The move forms part of the group’s strategy of consolidating its investments and will provide “further opportunities to accelerate its product and service offerings to the Cyprus market, MTN says in a statement.
The group acquired its initial investment in Cyprus in 2006 as part of a larger transaction. Since 2008, MTN Cyprus has grown its market share from 14% to about 33% and its number of subscribers had reached 316 000 by 30 September 2012 – the most recent subscriber numbers available.
MTN Group CEO Sifiso Dabengwa says the Cyprus business is “well established within a market that has good potential for accessing innovation and knowledge sharing that can benefit the overall group”.
The acquisition is subject to approval by the Commission for Protection of Competition of the Republic of Cyprus.
MTN share price was trading down by 0,6% shortly after markets opened on Wednesday. Over the past year, the counter has added almost 40%. — (c) 2013 NewsCentral Media