Africa’s leading telecom infrastructure provider, IHS Towers Limited has shifted its Initial Public Offer (IPO) valued at $10 billion, fearing that the sale may be too close to Nigeria’s general election next year.
The company is seeking to raise about $1 billion from the New York Stock Exchange (NYSE).
According to Bloomberg, if the tower operator goes ahead with the sale next year, teleco giant could sell its stake in the company where it currently owns about 29% stake.
MTN’s Chief Financial Officer, Ralph Mupita also revealed that the company’s stake in IHS Tower has been earmarked as an asset for sale.
The telco giant has a total debt of $4.8 billion, according to its FY 2017 results. Also in its financial statements for the year ended December, 2017, classified its investment in IHS as Available For Sale. The company could rake in over $2 billion from a likely sale of its stake in IHS wireless.
MTN is also planning an IPO later this year, this was one of the conditions MTN agreed to settle the $1 billion fine imposed on it by the Nigerian Communications Commission (NCC) in 2015. The company has paid $500 million so far, amounting to half of the fine.
This is the third IPO postponement by an African telecoms infrastructure provider in 2018.
Recall that Helios Towers recently halted its plans to launch an initial public offering (IPO) in London which was expected to value the business at about 2 billion pounds ($2.8 billion).
The company had earlier announced that it has received considerable interest from institutional investors who were supportive of the company’s business plan and growth prospects but its shareholders had decided to withdraw the planned listing.
Eaton Towers also halted its planned IPO on concern that the conditions may hurt the valuations. The mast company was seeking a valuation of about $2 billion in a sale in both London and Johannesburg. The company is owned by Ethos Private Equity Limited.
In recent times, there has been an upsurge in the number of telecommunications mast providers seeking to cash in on a profitable wireless communication on the continent, this can be largely attributed to the ever-growing population and an increase in mobile and data subscription.
IHS is one of Africa’s leading telecom infrastructure providers in Africa. The company builds, leases, and manages telecommunications towers. IHS has over 23,000 towers and operations in Nigeria, Zambia, Cameroon, Cote D Ivoire, and Rwanda. IHS had revenues of $904.7 million in 2016 and has about 2,000 staff. IHS is owned by private equity firm, the Wendel Group Ltd, Goldman Sachs, and MTN.
TikTok’s 38 year-old founder is worth $35.5 billion – Here’s what we know
At 38 years old, Zhang Yiming is the 39th richest man in the world.
TikTok a video sharing app was named the most downloaded app of the first quarter of 2021 but not much is known about its founder. The app now has over 689 million active users worldwide according to statistics from oberlo.com. It has also been downloaded over 2 billion times on App Store and Google Playstore. It is arguably the most popular video-sharing app out there and the numbers keep growing.
TikTok was able to grow at a faster rate than Facebook and Instagram since its startup. The man behind this massive success is currently worth $35.5 billion and he is our person of interest today.
Meet Zhang Yiming, the founder of Bytedance
38-year-old Zhang Yiming is the CEO and Founder of ByteDance, the parent company of TikTok. Zhang Yiming majored in microelectronics and software engineering at Nankai University. He worked for various tech startups including Microsoft before settling to start his own company.
The billionaire leads a very secretive lifestyle. He founded ByteDance back in 2012 and steered it all the way to financial success. He is currently worth $35.5 billion but his net worth is well on its way to doubling based on recent valuations.
ByteDance has two main flagship products – Toutiao, an AI-backed news aggregator and TikTok which he founded later after the success of Toutiao.
Revisiting the success of TikTok
Last year Zhang Yiming’s ByteDance was regarded as the most valuable startup in the world. TikTok became the most downloaded iOS app worldwide in the first quarter of 2019, according to the US research app Sensor Tower.
TikTok is available in 155 countries and in 75 languages.
Bytedance’s first major valuation was in 2018 where it was valued at $75bn according to Forbes. This was followed by another valuation which put it at $140bn according to CB Insights.
The latest 2021 valuation places ByteDance at over $250bn according to the South China morning post.
Zhang Yiming owns a quarter of ByteDance and with this recent valuation, his net worth is set to grow to $60bn according to experts in the field.
Donald Trump scare
The former president of the United States was on the verge of banning TikTok in the country. He claimed the App has ties to the Chinese government. This would have been a setback giving that the application is quite popular among US millennials and Gen Z. Donald Trump lost his re-election bid and very little has been said by the Biden administration on the issue.
What you should know
- At 38 years old, Zhang Yiming is the 39th richest man in the world. His parents were civil servants.
- The popularity of TikTok in the United States has raised concerns from US regulators.
FG explains why the loan amount for youth investment fund is limited to N300,000
At N300,000 per beneficiary, only 41,000 beneficiaries would be covered in the first tranche of N12.5bn.
The Federal Government has explained why it limited the loan amount for the current beneficiaries of the N75 billion Nigeria Youth Investment Fund (NYIF) to N300,000.
The government said that it had to place a limit of N300,000 for individuals and eligible businesses who meet the conditions and guideline in order to ensure that it gets to as many beneficiaries as possible.
This disclosure is contained in a statement signed by the Director of Press, Federal Ministry of Youth and Sports Development, who noted that the disbursement of the fund is being done in phases.
What the statement from the Federal Ministry of Youth and Sports Development is saying
The statement explained that the ministry had received more than 3 million applications for the initial N12.5bn made available adding that at the current cap of N300,000 per beneficiary, only about 41,000 beneficiaries could be covered.
The statement from the ministry partly reads, “The Ministry of Youth and Sports Development has been following with interest the reaction of some beneficiaries of the NYIF, particularly those expressing disappointment at the N300,000 cap on disbursement under the first tranche of N12.5bn.
Firstly, the framework specified N250,000 as the maximum for individuals and eligible businesses that are critical can access up toN3m subject to meeting key criteria set in the guideline and conditions.
Considering the number of applications received, there was the need to ensure spread and enable more beneficiaries enjoy the facility.”
The ministry assured beneficiaries that higher loan thresholds would be possible once additional funds were available in subsequent phases.
The ministry in the statement also noted that it is ideal to start and gradually increase, considering that there are lots of first-time borrowers as well.
The ministry reaffirmed that NYIF was not a grant, but a loan, targeted at supporting the youth to start small businesses or to inject funds into existing small businesses.
What you should know
- It can be recalled that the Federal Government had on October 15, 2020, launched the N75 billion Nigerian Youth Investment Fund, which was set up for investment in the innovative ideas, skills, and talents of Nigerian Youth.
- It is to also institutionally provide the Nigerian youth with a special window for accessing much-needed funds, finances, business management skills, and other inputs critical for sustainable enterprise development.
- The Federal Ministry of Youth and Sports Development is the lead implementation entity and is responsible for budgetary provisions and for funds mobilization.
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