(Ecofin Agency) - MTN Group sold its 20% minority stake in Belgacom International Carrier Services (BICS), a company specialized in the provision of mobile data and voice services. The South African telecom operator sold the shares for R1.8 billion ($121 million) to Proximus Group, Belgium’s largest telecom company.

“I am excited to conclude this agreement, allowing us to retain a growth engine within the Group and maintain full control over the globally renowned assets of BICS,” said Guillaume Boutin, CEO of the Proximus Group.

“I am convinced we can unlock the next growth phase of BICS and leverage BICS’ potential to consolidate a scattered market while continuing to invest in key growth areas,” He added.

The move is part of the Asset Realization Program (ARP), launched in March 2019 by the MTN Group to dispose of non-core assets, reduce debt and risk, simplify its portfolio and improve returns. The company has exited the shareholding of several African companies under this program.

The closing of the transaction is subject to the approval of the regulatory authorities of South Africa and Belgium. It will grant Proximus full control over BICS.

Chamberline Moko