Ralph Mupita, CEO of MTN Group (pictured), told the Financial Times (FT) the company was aiming for a valuation of between $ 5 billion and $ 6 billion for its mobile money arm when it was selling or listing one Prepared minority stake in the unit.
In an interview with the newspaper, Mupita provided basic details about the future of its Mobile Financial Services division, which is to be separated as part of a strategy that will allow it to capitalize on various assets unveiled in March.
Operating in several of Africa’s largest markets, the company has long valued its range of mobile money. The segment is often referred to as one of the most important growth areas for the business.
Mupita informed FT MTN that it plans to structurally separate the business within the next year.
The funds raised from the money and infrastructure assets will be used to further reduce MTN’s debt stack, which contributes to the divestments of a number of businesses that have been classified as non-core over the past two years.
MTN is also on sale in the Middle East as it plans to focus its efforts on Africa.
The operator isn’t the only one trying to raise money with the strength of its mobile financial services business. Regional rival Airtel Africa is selling two separate shares in investment company TPG and Mastercard earlier this year.
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