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IHS concludes MTN tower buy-out in Zambia, Rwanda

2nd May 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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Mobile infrastructure provider IHS Holdings this week concluded the acquisition – for an undisclosed amount – of 1 269 of telecommunications group MTN’s mobile network towers in Rwanda and Zambia.

The Africa-focused group would manage the respective 550 and 719 Rwanda- and Zambia-based towers, the addition of which brought the total number of towers in IHS’s portfolio to 10 500, as well as invest in a build-to-suit programme to support MTN’s future requirements in both countries.

Under the December agreement, IHS would also market services on the towers, promoting tower sharing and colocation to help drive network improvements, better services to subscribers and economic growth, IHS CEO Issam Darwish said in a statement.

MTN Rwanda and MTN Zambia would be the anchor tenants on the towers for an initial term of ten years, while colocation services would be offered to the other operators in the region.

The sale of the towers followed two 2012 deals with MTN where IHS bought 1 758 towers in Cameroon and Côté d’Ivoire for  $284-million.

IHS had secured $620-million of additional funding – $130-million in the second tranche of its latest fundraising in April and $490-million of debt and equity in March – to accelerate its plans for expansion into new and existing markets, as well as finance future acquisitions in key markets across Africa.

The funds would also support various strategic initiatives, including its organic expansion programme and the development of local engineering talent.

Edited by Creamer Media Reporter

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