MTN Assigns $231 Million Shareholder Loan to IHS; Books Charge in 2017 Accounts
By Ian Walker
MTN Group Ltd. (MTN.JO) said Thursday that it has assigned a $231 million shareholder loan to IHS Holding Ltd. and agreed new improved terms for MTN Nigeria's future network-expansion plans, resulting in a one-off accounting charge on its 2017 earnings.
The South African telecoms company said it expects a 2.8 billion South African rand ($230 million) loss on the carrying value of the loan following the assignment to IHS Holding. This will therefore impact earnings per share, but not earnings before interest, taxes, depreciation and amortization.
The loan was due in fiscal 2025.
MTN said the agreement with IHS allows MTN Nigeria to continue to invest in its network more efficiently, and further simplifies MTN's interests in IHS.
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(END) Dow Jones Newswires
December 28, 2017 02:07 ET (07:07 GMT)Copyright (c) 2017 Dow Jones & Company, Inc.