MTN Group Ltd. plans to sell at least half of its 19% ($655 million) interest in Africa Tech startup, Jumia, after the expiration of the lock-in period according to reports reaching Techawk.
The lock-in according to the report is 6 months following the milestone listing of the shares of Jumia on the New York Stock Exchange.
A lock-up period, also known as a lock-in, lockout, or locked up period, is a predetermined amount of time following an initial public offering where large shareholders, such as company executives and investors representing considerable ownership, are restricted from selling their shares.
“We have a six-month lock-up period where we can’t sell our shareholding,” an MTN spokesman said. “Post that period we will apply our minds on what to do with the investment.”
MTN which has said that eCommerce is not key to the company’s main business of phone and data services recently announced a $1 billion disposal plan. Other investments that could be sold include interests in flight-booking site Travelstart.co.za and telecommunication masts-operator IHS Towers Ltd.
