MTN CEO Ralph Mupita reassures staff of growth despite failed Telkom deal

Following the widely reported fall-out on talks between MTN and Telkom, the mobile telecoms operator’s Group CEO, Ralph Mupita has reassured staff that the company will grow.

The MTN CEO, Mupita, has thanked all of his staff members who were involved in the negotiations with Telkom.

Mupita said MTN still has the potential to attract business partners and paid tribute to the Telkom team despite their failure to seal the deal.

“I would like to thank all MTNers who were involved in the discussions and the due diligence engagements we have had with Telkom, for their hard work,” Mupita said per ITWeb.

“I would equally like to thank the team from Telkom, whom we engaged with professionally and respectfully over the last few months,” Mupita’s memo to staff reads.

“Our MTN SA business still has exciting and strong growth opportunities, and we continue to partner with Telkom on the national roaming agreement that we have in place.”

Mupita also made it clear that MTN its South African business still has strong growth opportunities, despite the failed Telkom transaction − a deal that could have cushioned the telco in the fibre market.

ITWeb also reports that in the leaked memo to the staff, this is the first time the MTN boss has directly addressed the Telkom issue that has been playing out since July when the potential tie-up discussions were revealed.

As also reported by BusinessTech Africa, MTN withdrew its non-binding offer to acquire all the shares of the telephony group for shares, or shares and cash.

Telkom added MTN as a roaming partner in November last year, giving it access to MTN SA’s 2G, 3G, and 4G network, which helps it reduce overall roaming costs.

Its South African business is of great importance to MTN, as the unit remains one of the most lucrative operating companies across its 19 markets, contributing significantly to the group’s revenue.

In the latest reporting period, MTN SA recorded a healthy performance, while accelerating its focus on high-growth business areas, to deliver strong EBITDA and cash flow growth.

MTN SA closed the quarter that ended March with a total of 34.5 million subscribers, an increase of 7.1%, driven by higher gross additions.

Main Image: Ralph Mupita/Business Insider Africa