OWN CORRESPONDENT, Johannesburg | Thursday 3.30pm.
CABLE & Wireless, the United Kingdom’s second largest telecommuncations group, is to sell its 25% share in MTN to Johnnies Industrial Corporation (Johnnic) and Transnet for 257-million — R2,75-billion, C & W announced on Thursday.
Johnnic will buy 74% of the C & W shares and Transet 26%, pending board approval. Should the Transnet board refuse the acquisition, Johnnic has agreed to buy the entire stake subject to its shareholders’ consent.
C & W has long been expected to sell its MTN stake in order to liquidate assets to persue its goal of digging its roots deeper in chosen markets. The deal will give rise to a before tax profit on disposal of around 200-million, the proceed of which will be used to cut group debt, C & W said. For the year to March 31 1998 C &W’s’ share of MTN’s pretax profit was 9-million and its share of net assets 48-million.
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