The Lebanese company M1 has recently finalized a deal to purchase 100% of MTN Afghanistan’s shares for  US$ 24 million. This comes as MTN Group intended to divest some of its subsidiaries, especially in Afghanistan,where substantial returns are not being achieved despite significant capital investment. MTN Afghanistan’s  assets are valued at circa US$ 115 million.  In June 2020, M1 Group through a subsidiary in Dubai made an offer to MTN Group to purchase its subsidiary  in Afghanistan. A preliminary sales agreement was signed between the two parties on March 2023 pending  final approval from the regulatory authority in Afghanistan. The required approval for the purchase was then  received in the second half of 2023 and the two parties began completing the deal as of the end of February2024.  It is worth noting that M1 Group executed a similar deal in Myanmar with a purchase from Norway’s Telenorfor US$ 105 million which was also considered a bargain. There exists a common factor between Myanmarand Afghanistan in that the political and security situations in the two countries are unstable which promptedcompanies to divest and sell assets at low prices. (ICE BEIRUT)

Fonte notizia: Bank Audi, Lebanon Weekly Monitor, 20 - 26 May 2024