South African telecom operator MTN Group sold its 18.9% stake in pan-African e-commerce platform Jumia for R2.3 billion ($138 million, current rate), we learned.

The company has always considered its participation in Jumia as non-core because even if it could generate value, it is not in line with its core business of telephony, internet, and now mobile financial services.

The current sale price is considered a consolation prize. After Jumia's IPO on the New York Stock Exchange in April 2019, the induced value of MTN Group's stake had reached $698 million at $47 per share. Revelations about possible manipulation of the e-commerce company's figures caused its share price to fall.

The coronavirus pandemic plunged the stock to a low of $2.3 per share as of March 20, 2020. And when the stock bounced back to a record high of $16.28 per share, MTN decided to sell its shares in the company.

It is difficult to pinpoint the exact timing of the sale. But according to S&P Capital IQ data, the estimated price of $10 per share was reached between August 21 and October 8. "We are proud to have been a partner in the evolution of one of Africa's pioneering online marketplace and will continue our relationship with Jumia through ongoing operational partnerships in some markets," the group commented in its third-quarter 2020 results.

A few months ago, the German company Rocket Internet also announced the sale of its 9.2% stake in Jumia. The departure of MTN Group will lead to changes in the shareholding of the platform led by the Frenchmen Jérémy Hodara and Sacha Poignonnec.

Chamberline Moko