- Africa’s largest GSM Network, MTN Group has said that it will exchange its 51% interest in Nigeria Tower Interco BV, for an additional shareholding in IHS Holding Limited.
- The deal will see MTN now own 20% of IHS up from 15% before the deal was announced.
- MTN interest in INT (owners of Nigeria Tower) is reportedly worth about R4.6 billion, and it recorded a R2.5 billion loss in the six months to June in that stake.
- MTN’s 15 percent stake in IHS was worth R11 billion.
- The transaction is also expected to close once new shares in IHS group have been issued during Q1 2017.
- In a statement issued on Wednesday, MTN said, “in exchanging all of its interest in INT in Nigeria for additional shares in the pan-African IHS Group, all of MTN’s interest in IHS will sit alongside a world-class group of investors including Wendel, the International Finance Corporation (IFC), Government of Singapore Investment Corporation (GIC), Korea Investment Corporation (KIC) and Emerging Capital Partners (ECP), among other international investors”.
- MTN explains the deal enables it 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.
- Executive chairman Phuthuma Nhleko says “the transaction represents a significant step in MTN’s long-standing partnership with IHS. It simplifies our ownership structure and diversifies our tower investments across the IHS Group. IHS Group is extremely well positioned for future growth and build-out from 3G upgrades and the move to long-term evolution across its key markets.”
- IHS Group is the largest independent tower operator in Africa, Europe and Middle East and the tenth largest independent tower company in the world, with over 23 300 towers.
- Source: Reuters/Press Reader
