MTN has officially liquidates Visafone, acknowledging a loss of ₦30.3 billion ($18 million) from the 2016 deal.
According to MTN’s H1 2024 financial statement, “Visafone is now fully liquidated.” This means all its assets and liabilities have been transferred.
When MTN Nigeria bought Visafone, their goal was to boost broadband internet quality. They were keen on Visafone’s 800MHz spectrum licenses. These licenses were crucial for offering 4G LTE services to MTN’s customers.
Visafone had 2.2 million subscribers, making it a key player. However, the Nigeria Communications Commission (NCC) delayed approving the spectrum license transfer. This delay led MTN to consider abandoning the deal.
Competitors like Airtel and 9mobile argued that MTN’s stake would rise from 38% to 50%, which was a big concern. MTN needed this acquisition to compete with Globacom, which launched 4G LTE in October 2016.
MTN’s move wasn’t new. In 2006, MTN bought VGC Communications Limited (VGCCL) for $70 million (₦9.3 billion). VGCCL provided nationwide cabling and radio telephone services.
While the exact terms of the Visafone deal weren’t revealed in 2016, MTN invested ₦43 billion in the acquisition.
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