JSE-listed MTN, one of Africa's largest cellular operators, is increasing its stake in Cyprus to 100% from its initial 50%, through its Dubai subsidiary, by buying out its partner, Amaracos Holdings, for an undisclosed amount.
MTN explains that the deal is part of its strategy to consolidate its investments and will "provide further opportunities to accelerate its product and service offerings to the Cypriot market".
The Cyprus unit, which launched in 2004, is one of the group's smallest operations as it only had 316 000 subscribers as at the end of September, the last time MTN updated its subscriber numbers.
However, cellphone users in the country are among the highest spenders, with blended average revenue per user of $25.05, as of September last year.
Group CEO Sifiso Dabengwa says: "MTN Cyprus is well established within a market that has good potential for accessing innovation and knowledge-sharing that can benefit the overall MTN group."
MTN acquired its initial investment in MTN Cyprus in 2006 as part of a larger transaction when it bought out 100% of Investcom, a holding company that had operations in 10 countries in Africa and the Middle East.
Since 2008, MTN Cyprus has grown its market share from 14% to around 33% and its subscriber base has more than doubled. It is one of the largest telecommunications providers in Cyprus and runs a fibre and HSPA+ network with around 400 staff.
MTN launched commercial operations in Cyprus in July 2004, after having won the auction for the second mobile licence. Its licence covers the use of both GSM and UMTS radio frequencies. In 2008, Amaracos acquired an initial 49% of MTN Cyprus' share capital.
The acquisition is subject to approval by the Commission for Protection of Competition of the Republic of Cyprus.
MTN's shares closed slightly lower yesterday, losing 552c or 3.01%, to end at R178.15.
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