According to some reports and anonymous sources, MTN Group is likely to sell half its 38% shareholding in JUMIA, an e-commerce giant that operates across several African countries and recently listed on the New York Stock Exchange (NYSE). At the time of publishing, MTN's stake in JUMIA was worth approximately $650 million.
However, MTN has said that there is a lock in period for shareholders and they are only likely going to think about any sale of their shares in JUMIA after this period.
“We have a six-month lock-up period where we can’t sell our shareholding. Post that period, we will apply our minds on what to do with the investment,” said a spokesperson from the South African headquartered telecommunications company.
Rumors of MTN selling stake in Jumia
This is not the first time that rumors and murmurs of MTN selling all or part of its stake in Jumia have circulated. During 2018, there were again rumors and reports that MTN was looking to sell its 30% shareholding in JUMIA. However, MTN came out and issued a statement denying those reports.
At the time, similar to how they've dismissed these recent rumors, MTN stated that it had no plans to sell its stake in JUMIA in the short term period. However, given the listing, this could be the best opportunity for MTN to maximise and reap its investment in the Rocket Internet founded e-commerce company.
Cover image credit: Jumia's first day on the NYSE.