South African telecommunications giant MTN (MTNJ.J) on Monday posted a 7.1% rise in half-year earnings and said it had signed an initial agreement with global payments firm Mastercard (MA.N) to sell a minority stake in its fin-tech arm.

MTN said its headline earnings per share – a profit measure – rose to 542 cents in the six months ended June 30 from 506 cents in the year ago period.

MTN had been trying to unlock value in its financial technology and payments arm amid crippling local power cuts which have forced it to set aside extensive capital for backup power systems.

The country’s second-biggest telecom company said it had signed a memorandum of understanding with Mastercard for a minority investment in its fin-tech arm, valuing it at around 5.2 billion dollars, almost 40% of MTN’s total market value.

By REUTERS