Monaco Telecom has agreed to buy MTN Cyprus in a cash deal worth €260 mln with the acquisition expected to be completed by September.
The MTN Group is Africa’s biggest wireless carrier by subscribers has agreed to sell 100% of MTN Cyprus.
The transaction values MTN Cyprus at about eight-times reported earnings before interest, tax, depreciation and amortization in 2017, the Johannesburg-based company said.
Under the agreement MTN will let Monaco Telecom continue to use the MTN brand in Cyprus for up to three years in return for a commercial fee, MTN said.
MTN Cyprus, which is the South African company’s only operating business in the European Union, was acquired as part of MTN’s purchase of Investcom LLC in 2006.
“It falls outside the group’s core footprint of Africa and the Middle East,” an MTN statement said.
MTN launched commercial operations in Cyprus in July 2004, securing the second mobile telephony license on the island and soon became one of the leading providers in Cyprus.
Over the past five years, the company has increased its market share by 7% and its turnover was 123 million euros for 2017.
Monaco Telecom, a member of NJJ Holding, acquired MTN, whose turnover last year reached €123 million.
MTN Cyprus is considered a key factor in Monaco Telecom's strategy to establih a foothold in the Mediterranean region.
Monaco Telecom is the provider of the Principality of Monaco but is currently expanding into new markets where it can offer its customers innovative products and services based on high-quality broadband networks.
It is a member of NJJ Holding – made up of leading providers in the markets of France, Italy, Switzerland, Ireland, Monaco and now Cyprus.
It holds the majority share of Monaco Telecom while the Principality of Monaco maintains the remaining percentage.
The Cypriot company was picked because it was viewed as the fastest growing provider in the country, seeing its customer increase over 20% in recent years.
“MTN Cyprus has become synonymous with innovation and innovative technologies in the country, while its key achievements and milestones were key elements of its selection process by new owners,” the statement said.
Johannesburg-listed MTN, which has businesses in 24 countries in Africa and the Middle East, is expanding in the continent and plans to launch a mobile service in Namibia in August.
