MTN South Africa sold 5,701 towers in South Africa for $410 million to IHS Holding Limited (IHS Towers).
IHS Towers is also delivering Power Management Services to MTN SA on approximately 13,000 sites across South Africa, including the acquisition portfolio, as part of the arrangement. IHS Towers is one of Africa major providers of telecommunications infrastructure.
In the first full year of operations, the acquired assets, as well as the supply of Power Management Services across MTN SA portfolio, are estimated to generate revenue and adjusted EBITDA of about US$192 million and US$85 million, respectively. South African Competition Commission has given this transaction their regulatory permission.
The transaction Power Management Services component aligns with IHS Towers’ existing service offering in other African areas; this service will be offered to the purchased facilities as well as other third-party locations where MTN SA is present. The focus of this service will be on power systems and site security.
More About The MTN & IHS Towers Deal
IHS Towers will hold 70% of the South African Towers business, while a B-BBEE group will own the remaining 30%.
With this acquisition, IHS now has a presence in eleven emerging markets, including seven in Africa, four in Latin America, and one in the Middle East, for a total of roughly 39,000 towers.
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“The completion of this transaction is a significant step forward in IHS development.” IHS was formed in Africa, and the continent remains a stronghold for the corporation. IHS Towers Chairman and CEO, Sam Darwish, remarked, “Through this deal, IHS has joined Africa’s most industrialized economy as South Africa’s largest independent tower operator.”
“MTN Group has been a long-time IHS partner, and I’m m thrilled that will be able to expand our partnership and improve mobile connectivity in South Africa.” “To address South Africa’s increasingly sophisticated data demands and hasten the roll-out of new technologies, we will harness our deep operational excellence and engineering knowledge, developed throughout our other African markets,” Darwish added.
What They Are Saying
MTN Group President and CEO Ralph Mupita expressed his delight at IHS bringing global skills to the South African network.
“We continue to deliver on our Asset Realisation Programme with this deal, strengthening the balance sheet and enhancing returns,” Mupita added.
“MTN SA has established and maintained the best network in the country over the years, and we feel we have found a partner with the knowledge and expertise to preserve and enhance this essential element of the business in IHS.” According to Charles Molapisi, CEO of MTN SA, “this international cooperation also brings foreign investment into the market, creating increased competitiveness.”
About IHS Towers
IHS Towers is one of the largest telecommunications infrastructure providers in Africa, Latin America, and the Middle East by tower count and the fourth largest independent multinational tower company globally
IHS Towers brings the power of mobile technology to hundreds of millions, accelerating the digitalization of economies through the acquisition, management, and construction of critical national infrastructure.