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
Dimension Data announces WirelesscoDimension Data MEA is to launch a new company, WirelessCo, which will build and operate an open access carrier-grade WiFi network. Read More
UBA, ATI collaborate to boost regional and international tradeUnited Bank for Africa (UBA) has entered into a partnership with the African Trade Insurance Agency (ATI) to ease the flow of credit to clients engaging in regional and international trade. Read More
3rd Startup Knight competition to take place in SAByte Orbit has launched the third edition of its annual Startup Knight competition, which the company says aims to empower aspiring tech entrepreneurs in South Africa and offers the winner ZAR250,000 (US$22,000) in prizes. Read More
Global smartphone shipments to reach 1.2bn this yearThe number of smartphone shipments will approach 1.2bn this year, an increase of 19% from 985m in 2013, says a new report. Read More
ITC urges governments to increase public procurement from women vendorsThe International Trade Centre (ITC) has launched an initiative to increase the number public procurement contracts being awarded to women-owned businesses. Currently only an estimated 1% of public-procurement contracts globally are awarded to WOBs or women entrepreneurs. Read More
Orange launches start-up accelerator programme in Ivory CoastWith “Orange Fab Ivory Coast” and “Fab Israel”, Orange’s network of start-up accelerators is now present on four continents. Read More
Safaricom shareholders agree yuMobile buyoutShareholders of Kenya’s leading telecom Safaricom voted in favour of the company’s acquisition of the network, IT and infrastructure of smaller rival yuMobile at the firm’s annual general meeting (AGM), meaning the deal now only requires regulatory approval to proceed. Read More
TLcom achieves second profitable African exit of 2014 with Movirtu saleVenture capital firm TLcom Capital (TLcom) has announced its second profitable exit in Africa this year with the sale for an undisclosed fee of virtual identity solutions provider for mobile operators Movirtu to BlackBerry. Read More
Why CWG is re-strategisingNigeria’s Computer Warehouse Group (CWG Plc) is re-strategising to take the company in a different direction. Read More
FEATURED STORYMFarmer SMS redefines market access for Ugandan farmers
Ugandan smallholder farmers are benefitting from an ambitious innovative ICT mobile phone initiative that offers weather reports and up-to-date market information about changes in prices for agricultural commodities, thus granting them lucrative returns from their farming ventures.
BEST READ NEWS
IN DEPTHiProcure delivers inputs to farmers’ doorsteps using ICTs
An innovation dubbed iProcure is already being used by several agro input firms which are now relying on it to distribute their products to farmers.
COMPANY NEWSSchneider Electric signs exclusive off-grid solar distribution agreement with Zimbabwean firm
Schneider Electric has announced the signing of an exclusive agreement with Samansco, a Zimbabwean renewable energy, back-up power and appropriate technology company.SAP Innovation Helps The Global Fund Fight AIDS, TB and Malaria in Africa
Extending a longstanding partnership, SAP is a founding member of The Global Fund’s new Innovation Coalition to support disease prevention and treatment.