A leading Africa-focused telecommunications company, Telecel Group, has acquired two West African units from MTN Group Limited preparatory to the latter’s upcoming initial public offering (IPO) within the next three years.
According to available information on the deal, the acquired assets of MTN, Africa’s largest wireless company include its debt and equity in Guinea-Bissau and Guinea-Conakry.
The acquisition, which followed Telecel Group’s previous purchase of Vodafone Group Plc’s operations in Ghana last year, marked a strategic endeavour by its Board to expand its operations in the region.
The Chief Executive Officer of Telecel Group, Moh Damush, hinted that the company was also considering listing its shares in Dubai and London, demonstrating its preference for international stock exchanges.
In addition, Telecel Group has also expressed interest in exploring listing opportunities on African exchanges in the coming years in furtherance of its commitment to leveraging the continent’s growing telecommunications market, Bloomberg first reported.
While industry experts foresee that Africa’s youthful and rapidly expanding population will avail Telecel a lucrative market its telecommunications services, many believe that the challenges of insufficient energy infrastructure and low income earning consumers in the continent may pose some operational hiccups for the company.
However, the Telecel Group’s Board and management remain optimistic about its growth prospects in the region despite the current challenges.
For instance, Damush has expressed the determination of the company to brace all odds to acquire more assets, particularly in the financial services and technology sectors, to diversify its portfolio and enhance its value proposition to investors
He maintained that the company would be exploring financing opportunities from shareholders, Africa-focused funds, banks, and equity investors to support its expansion strategy in the continent.
With a focus on strategic acquisitions and potential listings on international and African stock exchanges Telecel has been expanding its presence across multiple African markets, including Ghana, Central Africa Republic, and Liberia with support from its partners Hugues Mulliez and Nicolas Bourg in recent years.
