MTN Group shareholder Newshelf, which is made up of MTN executives and staff, has entered into an agreement to repay the debt it took to buy the 18.7 stake in the cellular operator, three years ahead of schedule.

MTN announced on Wednesday that Newshelf had concluded an early redemption agreement with funders including Transnet and the Public Investment Commissioners (PIC).

In terms of the deal, Newshelf is selling most of its MTN stake to the PIC for an undisclosed amount, and will only retain a 6.9 percent stake in MTN.

Newshelf bought the 18.7 percent stake from Transnet tro years ago for R4.3- billion.

The deal will mean that Newshelf will own shares in MTN without any debt, and will significantly reduce its financial risk.

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