MTN sells towers in Cote d’Ivoire, Cameroon
BUSINESSBy BiztechAfrica - 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
Yahoo! MEA exec resigns to launch emerging markets social TVAhmed Nassef has announced that he has left his role as Yahoo's Vice President and Managing Director for Middle East and Africa to found Telfez. Read More
Swift Networks acquires DoPCSwift Networks has acquired the long term evolution (LTE) or 4G business of Direct on PC (DoPC). Read More
Africa must think beyond blue collar jobsPan-African job creation initiatives need to look beyond basic job creation, to high level ICT skills development, to develop the economies, says Greg Vercellotti, executive director at Dariel Solutions. Read More
Interswitch moves for growthPan-African integrated payment processing and transaction switching company Interswitch has spun off two of its core divisions for growth. Read More
China-Africa Development Fund opens industrial park in SAElectronics firm Hisense has officially opened its new Home Appliances Industrial Park in Atlantis in Western Cape, South Africa. Read More
USD100m to support trade finance in AfricaThe African Development Bank (AfDB) has formally signed a USD 100 million unfunded Risk Participation agreement (RPA) with Commerzbank AG to support trade finance in Africa. Read More
Red tape slows business in AfricaThe sheer complexity of travelling to many African countries is hampering the roll-out of business there, says Carlos Ferraz, GM of Motorola Solutions. Read More
Agambire calls on foreign students to bring knowledge homerlg Chief Executive Roland Agambire has told African youth living and studying abroad they have a moral duty to return to their countries and bring their international knowledge to bear on ongoing reconstruction efforts on the continent. Read More
IDC: another ‘remarkable quarter’ for MEA tablet marketThe tablet market in the Middle East and Africa (MEA) region grew 184% year on year in the first quarter of 2013, says IDC. Read More
London conference to focus on investment in GuineaFollowing on from a Mining Code Briefing on 12 June, the ‘Invest in Guinea’ initiative is organising an all-day Invest in Guinea Conference on 13 June in London. Read More
FEATURED STORYAirtime transfer big business in Ivory Coast
Airtime transferred direct to mobile is proving popular among consumers and is generating jobs in Ivory Coast.
BEST READ NEWS
IN DEPTHAfrica must think beyond blue collar jobs
Pan-African job creation initiatives need to look beyond basic job creation, to high level ICT skills development, to develop the economies, says Greg Vercellotti, executive director at Dariel Solutions.