MTN agrees to dispose of Afrihost stake

27 Jun 2016

MTN South Africa has announced that it will dispose 50% (plus one share) of local ISP Afrihost to its management team, subject to regulatory approval. MTN said that the sale of Afrihost is in line with its strategy of focusing on core business and pursuing opportunities in relevant adjacent businesses. ‘Evolving market circumstances have resulted in MTN reviewing its ownership in Afrihost. As a result, MTN has agreed to dispose of its shareholding to the executive management of Afrihost,’ the company said.

As previously reported by TeleGeography’s CommsUpdate, in June 2014 MTN announced plans to acquire 50% (plus one share) of Afrihost’s capital, with the deal approved by the country’s Competition Tribunal on the recommendation of the Competition Commission (CompCom) in November that year. Afrihost highlighted at the time that the partnership with MTN would bring more opportunities to its clients, by leveraging MTN’s significant investment in broadband and other technologies. The ISP, however, has experienced a number of network issues since, with its decision to propose a share buyout in May this year reportedly prompted by ‘challenges associated with MTN shareholding.’

South Africa, Afrihost (incl. Axxess), MTN Group, MTN South Africa