Global telecommunications infrastructure provider IHS Holding Limited has concluded its acquisition of 5 701 towers from mobile network operator MTN South Africa. The planned acquisition was announced in November 2021.
This follows the Competition Commission’s approval, with several conditions, of the sale of the passive tower infrastructure sites owned by MTN SA in March.
The deal will see IHS Towers owning 70% of South Africa’s tower business, under its South African subsidiary IHS Towers South Africa, with the remaining 30% to be owned by a broad-based black economic empowerment (BBBEE) association.
The companies confirmed in a joint statement issued on Wednesday that the transaction is worth R6.4 billion.
Acquired assets and provision of power management services across MTN SA’s tower portfolio are expected to garner an estimated revenue of $192 million (more than R2.9 billion) and an adjusted Ebitda of approximately $85 million (over R1.3 billion), in the first year of operations.
“IHS Towers is also providing power management services to MTN SA on approximately 13 000 sites, including the acquisition portfolio, across South Africa …. This service will primarily involve power systems and security at sites,” adds the statement.
MTN Group CEO and president, Ralph Mupita says the group is pleased to have IHS bring its global capabilities to South African networks.
“Additionally, with this deal, we continue to deliver on our asset realisation programme, strengthening the balance sheet and improving returns,” he adds.
According to Charles Molapisi, MTN SA’s chief executive officer, the deal will encourage foreign investment into the South African market to create greater competition.
The acquisition will see IHS operating in eleven emerging markets with seven in Africa, in addition to four in Latin America and the Middle East, with a global tower count of nearly 39 000.
Nondumiso Lehutso is a Moneyweb intern.