MTN may sell its 40% stake in African online retailer, Jumia

MTN Group is said to be considering a sale of its shares in online retailer, Jumia, either through an IPO or through a private sale of shares to new investors, according to Bloomberg sources.

The telco, which is the biggest shareholder in Jumia with a 40 percent stake may be planning an initial public offering for the online retailer on the Nasdaq or New York Stock Exchange, with sources saying that other investors like Germany-based Rocket Internet are also open to selling stock.

Jumia, with e-commerce operations in 14 African countries, is said to be currently valued at about $1 billion with sales growth of between 70 percent and 90 percent annually since its inception in 2012.

Bloomberg notes that a successful listing could help MTN reduce debt, which increased to 69.8 billion rand ($4.8 billion) as of the end of June, compared with 57.1 billion rand six months earlier.

While an MTN spokeswoman was quoted as saying that the telco “currently has no plans to dispose of its investment in Jumia in the short term,” in an email, Jumia and Rocket declined to comment on the story.

It is uncertain whether or not Jumia’s other shareholders, Goldman Sachs Group Inc., Millicom International Cellular SA and Orange SA would be selling their stock on the online retailer.