The downsizing operation continues at MTN, with this information reported by Bloomberg, which indicates a willingness of the shareholders of the group to part with part or all of its stake of 243 million dollars in Jumia Technologies AG.
For several months now, we have noted that MTN has tried, with varying degrees of success, to get rid of its “non-essential” assets as part of its new strategy aimed at reducing the weight of its debt, consolidating its gains on its main markets, and to open up new horizons.
The perfect time to sell?
The timing is perfect. The share price of Jumia, Jumia Technologies AG (JMIA), self-proclaimed first African unicorn, is indeed at its highest for more than 18 months. The share price has skyrocketed over the past three months, and it is now close to $ 20, $ 5 less than when it was floated on Wall Street.
The telecoms company, which has in the past increased the number of strategic positions taken in companies on the continent and in the Middle East, therefore wishes to take advantage of this upturn which may be temporary in order to recover as much as possible of its initial investment.
Given the great volatility, and the multiple uncertainties that reign around Jumia, this sale may seem logical.
–
