MTN sells towers in Cote d’Ivoire, Cameroon
BUSINESS| Oct. 12, 2012, 5:41 p.m.
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.
MORE BUSINESS NEWS
Beachhead Solutions introduces channel programme for emerging marketsBeachhead's high-ROI reseller programme is now available in MEA and India. Read More
Barclays Africa launches RiseA new global start-up community has been launched to pioneer financial services and unlock Africa’s potential. Read More
JUA Energy enters Nigeria after success in KenyaAfter successfully entering the Kenyan market in April 2014, solar-powered systems and technological electronic accessories manufacturer brand JUA energy has launched in Nigeria to sell through e-tailer Jumia. Read More
Fundamo founder joins Nomanini’s advisory boardFundamo founder Hannes Van Rensburg, generally considered the father of mobile payments, has joined the advisory board of Nomanini, a South African-based, enterprise technology transactions platform provider. Read More
Airtel sponsors Indo-Africa ICT Expo 2015Airtel is sponsoring the Indo-Africa ICT Expo 2015 being held at the Kenyatta International Conference Centre (KICC) now underway in Nairobi. Read More
MTN acquires Smart Village to enhance its foothold in the fibre network spaceMTN has concluded a deal with MultiChoice to acquire Smart Village, which will accelerate the mobile operator’s fibre to the home (FTTH) strategy to be the provider of choice for high speed fibre network across South Africa. Read More
Agilitude opens East African office on the back of mobility and cloud growthSalesforce reseller and Consulting Partner Agilitude has announced that is has opened an office in Kenya, making East Africa its next target for growth. Read More
MTN gets ethics management committeeMTN Nigeria has set up an ethics management committee with the sole responsibility of managing ethics risks. Read More
200 entrepreneurs to launch innovative businessesOver 200 entrepreneurs from across Africa are set to receive resources, networking opportunities and mentorship from Microsoft 4Afrika and AMPION. Read More
FEATURED STORYConnectivity critical for Nigeria's ICT sector, says SES chief
Connectivity is vital for any country to fully optimise the huge potential of cyberspace, SES Sales Manager for West Africa Joy Nma Emenike tells Kokumo Goodie.
BEST READ NEWS
IN DEPTHHigh tech homes: Just press play
High tech, digital homes where everything is automated and connected aren’t the stuff of science fiction any longer, says BNC Technology.