IHS Towers has reached a deal with MTN Group to acquire new towers in South Africa. MTN will sell its energy towers and infrastructure to IHS Towers for R6.4 billion (about $412 million).
Although the two entities are legally independent, MTN is the largest shareholder in IHS Towers, with a 25.9% stake. The buyer expects the acquisition to generate an additional $220 million in revenue and $80 million in pre-tax and depreciation income in the first year of operation.
Before the transaction is concluded in H1 2022 as planned, MTN is required to pay all existing debt on the facilities to be divested. IHS, whose shareholders are major private equity players in Africa (Wendel owns 23% of shares and Emerging Capital Partners owns 3.8%), plans to borrow part of the resources on the South African debt market to finance this operation.
The company is also working on new international fundraising and has selected Citigroup to facilitate discussions with international investors.
The telecom tower operator has taken on debt in recent years to finance its expansion plan. This strategy seems to be paying off, as according to its recent performance indicators, profitability is back on track, with a net margin that has become profitable, and debt that has stabilized.
Over the past two decades, mobile money has grown into a cornerstone of African finance. Driven by i...
• Tanzania to host investor talks on expanding CNG infrastructure• Government aims to boost CNG use,...
Nigeria eyes $671m data center market by 2030, seeks Chinese investors. Rising mobile da...
• Lucara secures $10M loan for Karowe underground project• UGP faces delays, costs rise to ...
• Union Bank merges with Titan Trust, forms single entity• All TTB assets, branches now under the Un...
• Ousmane Sonko starts a five-day official visit to Abu Dhabi on September 7• Talks to focus on infrastructure, smart cities, renewables, and agriculture•...
• Engie Africa adds 75 MW from Grootspruit solar plant in Free State province• A second 75 MW project at Graspan is due online in late 2025• Both plants...
(AFRICA SOVEREIGN CARBON REGISTRY) President Ismaïl Omar Guelleh calls to “Change Paradigm” and highlights Sovereign Carbon Agency’s Impact Projects in...
• Thor to acquire remaining 30% stake in Douta, raising ownership to 100%• Deal worth $3 million plus 1.5% royalty, pending government approval•...
• Nigeria to turn Abuja stadium into culture, sports innovation hub• Project includes museum, arenas, markets, and youth creative center• Gov’t...
The Tomb of Askia is one of the most important historical and cultural monuments in Mali, inscribed on the UNESCO World Heritage List since 2004. Located...