MTN sells 6,000 towers to IHS
June 6, 2022
By Chris Forrester
South Africa’s IHS Towers will shortly be the nation’s largest operator of cellular and radiocommunications towers. IHS is completing the purchase of MTN’s portfolio of 5,701 towers in a deal valued at Rand 6.4 billion (€383.3m) liabilities of some Rand 4.6 billion.
The deal sees IHS take 70 per cent of the eventual combined business with the remaining 30 per cent held by the Black Economic Empowerment (B-BBEE) consortium.
Ralph Mupita, MTN’s group president and CEO, commented: “With the regulatory approvals and all conditions precedent to the deal finalised, we are pleased to have IHS bring global capabilities to our South Africa network.”
Sam Darwish, IHS Towers chairman/CEO, added: “The closure of this acquisition is an important milestone in IHS’s growth story. IHS was founded in Africa and the region continues to be a key anchor for our company.”
The agreement sees also sees IHS providing power management technology and services to MTN on approximately 13,000 sites including in other African markets, including the 5,701 towers acquired as part of this agreement and across South Africa. The services under contract include site security.
Analysts suggest that the new business will result in revenues of some $192 million in the first full trading year of the new structure.