MTN Group has announced that it has completed the disposal of its passive tower portfolio to IHS Towers.
The telecommunications operator mentioned last year that a consensus was reached with IHS to sell a large portion of its local tower portfolio in a US$409 million deal.
Furthermore, the operator only agreed to dispose of the “passive” parts of the towers and not the “active” or radio components, which includes 4 000 so-called “greenfield” and 1 700 rooftop sites.
Access to the sites will allow IHS Holdings to on-sell space to other telecom operators and broadband service providers.
The agreement will see IHS Holdings providing power management services to 13 000 sites, including those in the acquisition portfolio, across South Africa.
IHS Towers will possess 70 per cent of the South African towers business, with the remaining 30 per cent to be held by a B-BBEE consortium.
The company said, “With this acquisition, IHS now has an operational footprint in 11 emerging markets, of which seven are in Africa, in addition to four in Latin America and the Middle East, with a global tower count of nearly 39 000 towers.”
Sam Darwish, IHS Chairman and CEO, said, “The closure of this acquisition is an important milestone in IHS’s growth story. IHS was established in Africa, and the region continues to be a key anchor for our organisation,”
IHS Holding, which is currently listed in New York, is one of the world’s largest independent tower owners and operators.