MTN sells towers in Cote d’Ivoire, Cameroon
CAMEROON| 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 CAMEROON NEWS
Cameroon to increase telephone digits in NovemberThe number of telephone digits in Cameroon will be increased from eight to nine come 21 November 2014, the telecoms regulator, l’Agence de Régulation des Télécommunications (ART), announced recently at a press briefing. Read More
Teachers recognised for best use of ICTsThe MTN Foundation and Cameroon’s Ministry of Secondary Education have recognised teachers who make the best use of ICTs in education. Read More
Cameroon prepares to welcome 4th mobile operatorThe mobile sector in Cameroon is set to undergo a major shake-up with the entry of a fourth operator in January. Read More
Africa Holding Internet moving Cameroon’s internetWith three million followers online and five specialised joint ventures, Africa Internet Holding, a member of Africa Internet Group (AIG), is fast becoming Cameroon’s most talked about online enterprise, only 10 months since its creation. Read More
University of Yaounde I adopts MTN Mobile MoneyMTN Cameroon has signed a partnership agreement with the University of Yaounde I for the use of the MTN Mobile Money solution by students for their financial transactions with the university. Read More
Jumia launches in CameroonPan-African e-commerce site Jumia has launched in Cameroon, taking to nine the number of countries where it is active. Read More
MTN Cameroon launches youth development programmeMTN Cameroon has announced the launch of the YEP programme to develop Cameroonian youths. Read More
Congo Brazzaville, Cameroon customs go hi-techCongo-Brazzaville and Cameroon have agreed to seek the help of ICTs to computerise their customs services. Read More
MTN Cameroon transfers WACS landing station to stateMTN Cameroon has transferred ownership of the WACS submarine fibre optic cable landing station at Limbe to the State of Cameroon. Read More
FEATURED STORYGrowing African focus on data security
Beachhead Solutions’ new SA and Mauritius country manager explains the challenges and solutions around securing customer data and compliance with new personal information legislation.
BEST READ NEWS
IN DEPTHAfrica 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.
COMPANY NEWSVMware reports third quarter 2014 results
VMware, the global leader in virtualization and cloud infrastructure, today announced Year-over-Year Revenue Growth of 18% to $1.52 Billion in its financial results for the third quarter ...