Telecommunications giant MTN Group will exchange its 51% interest in Nigeria Tower InterCo, the parent company of INT Towers, the Nigerian telecoms tower operator, for an additional shareholding in IHS Holding.
As a result, MTN’s economic interest in IHS Group will increase from 15% to 29%, with the transaction having no conditions precedent. The transaction enables MTN to simplify its tower ownership structure and diversify its tower infrastructure exposure across the IHS group, which operates in a number of markets across Africa.
It further allows the group to benefit from its previously owned passive infrastructure and continued network investment.
The transaction is expected to close once the new shares in IHS Group have been issued in the first quarter, with all MTN’s interest in IHS sitting alongside investors including Wendel, the International Finance Corporation, Government of Singapore Investment Corporation, Korea Investment Corporation and Emerging Capital Partners, besides others.
MTN chairperson Phuthuma Nhleko said the transaction represented a significant step in MTN’s long-standing partnership with IHS. “It simplifies our ownership structure and diversifies our tower investments across IHS Group. “IHS Group is extremely well positioned for future growth and build-out from third-generation upgrades and the move to long-term evolution across its key markets.”
IHS Group CEO Issam Darwish added that the MTN transaction and partnership were transformational for IHS and allowed the company to invest a significant amount of capital to better serve its customers and accelerate its growth and the development of critical telecommunications infrastructure across Africa.