MTN sells towers in Cote d’Ivoire, Cameroon

BUSINESS

|
Image: By BiztechAfrica
MTN sells towers in Cote d’Ivoire, Cameroon

MTN and IHS Holding Limited have entered into definitive agreements pursuant to which IHS will acquire up to 931 mobile network towers from MTN Cote d’Ivoire for USD141 million and up to 827 towers from MTN Cameroon for USD143 million.

Under the definitive agreements, IHS will be a 100% shareholder of the tower companies to be set up in each country to manage the towers and other passive infrastructure. MTN CIV and MTN CMR will, on commercial terms, become the anchor tenants on the towers being purchased for an initial term of ten years.

“The benefits to MTN of monetising our non-core assets and outsourcing passive infrastructure to experienced independent companies such as IHS are considerable,” said Sifiso Dabengwa, Group President and CEO of MTN Group. “With a continued commitment to improving the service to our customers, a reduction of our capital expenditure requirements allows us to concentrate on investing in our customer base and implementing additional services to meet the demand for innovative products and data.”

The sale of towers is in line with MTN’s infrastructure sharing strategy aimed at the monetisation of its assets and cost optimisation. The agreements include a commitment from IHS to roll out a build-to-suit programme to support MTN’s future requirements in both countries, as well as pursue opportunities to build tower sites for other wireless operators.

“We are delighted to build on our successful partnership with MTN for whom we have previously built and maintained sites in Nigeria and Sudan. Our strong technical capabilities and operational expertise reinforce MTN’s performance-oriented approach and high standards of service,” said Issam Darwish, CEO of IHS.

“This transaction is the next step in our strategy for expansion across Africa; we continue to invest in countries with attractive economic and demographic profiles. This transaction firmly positions IHS as a leading mobile tower infrastructure company in sub-Saharan Africa with resources for continued expansion and technological innovation.”

Following closing of the contemplated transactions, IHS will become the largest independent tower company in West Africa with a presence in the four largest economies in the region; Nigeria, Ghana, Cameroon and Cote d’Ivoire.

The transactions are expected to close during the first quarter of 2013, subject to customary closing conditions.



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE BUSINESS NEWS

Riverbed to be acquired by Thoma Bravo in $3.6bn deal

Riverbed Technology has entered into a definitive agreement to be acquired by leading private equity investment firm Thoma Bravo, LLC and Teachers’ Private Capital, the private investor department of Ontario Teachers’ Pension Plan.  Read More

Egyptian revival spurs MEA PC market growth

The PC market in the Middle East and Africa (MEA) region grew 2.1 per cent year-on-year in the third quarter of 2014, according to the International Data Corporation (IDC), spurred by the revival of the Egyptian market and two significant education deals in Pakistan.   Read More

ICT set to shape Africa's economic landscape in 2015

With public cloud in emerging African countries set to grow at a compound annual growth rate of up to 84% over the coming five years, the year 2015 heralds the beginning of a new era for ICT adoption across the continent, says IDC.   Read More

88mph and Microsoft Ventures partner to support startups in Nigeria

Microsoft, in partnership with 88mph, has announced the expansion of the Microsoft Ventures program into Nigeria. Read More

Riverbed names new senior VP of Sales in EMEA

Riverbed Technology has announced that Kristian Thyregod has been promoted to Senior Vice President Sales, in Europe, the Middle East and Africa (EMEA). Read More

M&A, infrastructure sharing, liberalisation to reshape telecoms in Africa

Mergers, acquisitions, infrastructure sharing and market liberalisation will reshape Africa’s telecommunications markets by 2018, according to market analysts Frost & Sullivan. Read More

Dell, Intel study uncovers truth behind technology and the workforce

Dell and Intel have unveiled findings from its second Global Evolving Workforce Study, which identifies, and explores current and future trends pertaining to the workplace and workforce, and the role that technology has played in their evolution.  Read More

PWC: Optimism abounds but a bumpy journey ahead for some

PwC’s ‘Capital Projects & infrastructure in East Africa, Southern Africa and West Africa,’ report says infrastructure spend in the region is projected to reach $180bn per annum by 2025. Read More

Why govt listed Glo, others as top firms

Nigeria’s national carrier, Globacom and 99 other top notch firms have been listed as top 100 Firms in Nigeria for the 2014 fiscal year. The top 100 companies list is based on international benchmark set by the International Integrated Reporting Council. Read More

Women can lead 21st century ICT industry, says Zinox chief

With the right mix of innovation, business focus, accountability and ambition, women entrepreneurs can spearhead the evolution of the ICT industry in the 21st century, says the Chairman, Zinox Group. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoice

FEATURED STORY

PWC: Optimism abounds but a bumpy journey ahead for somePWC: Optimism abounds but a bumpy journey ahead for some

PwC’s ‘Capital Projects & infrastructure in East Africa, Southern Africa and West Africa,’ report says infrastructure spend in the region is projected to reach $180bn per annum by 2025.

IN DEPTH

Africa lags on digital migration Africa lags on digital migration

Only three African countries have so far completed the digital migration process, and serious issues are hampering the migration in other nations.