MTN said to mull sale of shares in $1bn-rated Jumia | Fin24

MTN said to mull sale of shares in $1bn-rated Jumia

Aug 16 2018 20:47
Loni Prinsloo

MTN Group is exploring a sale of shares in African online retailer Jumia and values the company at as much as $1 billion, according to people familiar with the matter.

Africa’s largest wireless carrier is considering an initial public offering of the business on the Nasdaq or New York Stock Exchange, said the people, who asked not to be named as the information isn’t public.

Johannesburg-based MTN is the biggest shareholder in Jumia, with a 40% stake, and smaller investors such as German startup backer Rocket Internet SE are also open to selling stock, they said.

Another option under consideration is a private sale of shares to new investors, according to the people. Jumia currently has an estimated enterprise value of about $1 billion, they said, and has grown sales by between 70% and 90% annually since its inception in 2012.

MTN "currently has no plans to dispose of its investment in Jumia in the short term", a spokeswoman said in emailed comments on Thursday.

The shares gained 2.1% to R101.50 in Johannesburg, having closed below R100 for the first time since 2010 the previous day.

Jumia and Rocket declined to comment.

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