LONDON – Cable & Wireless plc announced plans to sell its 25-percent interest in Mobile Telephone Networks Holdings (Pty) Ltd., a South African Global System for Mobile communications operator, to two companies for about $417.13 million.
Cable & Wireless will sell 74 percent of its stake to Johnnies Industrial Corp. Ltd. and 26 percent to Transnet Ltd. Both of the purchasers already have stakes in MTN. If Transnet’s board of directors does not approve the purchase, Johnnie agreed it will purchase the entire Cable & Wireless stake, conditional to receiving shareholder consent, said Cable & Wireless.
Cable & Wireless expects proceeds from the sale to be about $324.62 million, which it plans to use to reduce debt, said the company. For the year ended March 31, 1998, Cable & Wireless’ share of MTN’s profits before tax was $14.6 million and its share of net assets was $77.9 million.
