There appears to be an emerging giant in the telecommunications industry in Africa. IHS Towers has just signed a deal worth $412 Million with MTN to buy 5,709 of its existing telecommunication towers.
You will recall that the company recently acquired a license to build and lease multiple telecom towers in Egypt. Both deals have increased the company’s operations and made it the largest telecommunication operating company in South Africa.
According to a press statement released to the media, the company said:
“IHS Towers will pay MTN Group the sum of $412 million (ZAR6.4 billion) for the towers. Also, as part of the terms of the agreement, IHS Towers will provide Power-as-a-Service (“PaaS”) to MTN Group at some 12,800 sites across South Africa.
“IHS Towers expects that the deal will help it to deliver revenue and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of approximately $220 million and $80 million, respectively, over the next financial year.”
Experts and stakeholders have been reacting to the acquisition, positioning IHS as the largest independent telecommunication infrastructure company operating out of South Africa.
Responding to the news, the Chairman/CEO of the company, Sam Darwish said that there is more to come from the company as it is set to become the largest telecommunication infrastructure company in Africa.
He was quoted as saying:
“I am exceptionally proud to announce IHS’ creation of the largest independent tower operator in South Africa, which represents the start of a new chapter in South Africa’s telecommunications infrastructure sector. The country has a growing population of almost 60 million people, and we are committed to utilizing our operational expertise to invest in the towers acquired and provide cutting-edge power services where necessary.
“Our long-standing relationship with MTN Group, coupled with our two decades of operation on the African continent and track record of delivering consistently strong network uptime, will enable us to deliver an infrastructure capable of meeting South Africa’s increasingly sophisticated data demands.
“Although we have expanded into new regions over the last two years, this agreement is testament to our continued commitment to facilitating mobile connectivity across the African continent.”
