AFRICA TELECOM SECTOR
MTN grows IHS stake in Nigeria tower deal
MTN has swapped its 51% stake in Nigeria Tower InterCo for additional shares in tower management company IHS Holdings, in a deal that will simplify its tower investments and reduce exposure to currency volatility. IHS manages more than 23,300 cellphone towers across Africa, Europe and the Middle East. MTN and IHS formed Nigeria Tower InterCo in 2014, which subsequently bought MTN Nigeria’s 8,850 towers. MTN owns a 15% stake, valued at R11.4bn, in IHS Group. As part of the deal, MTN’s shareholding in IHS will rise to 29% but the group will still have no board representation. There are also restrictions on access to information as IHS manages towers used by cellphone network operators that are also competing with MTN in some markets. Cellphone network operators are outsourcing passive infrastructure such as towers to third parties to raise money and reduce costs of running such assets. Mergence Investment Managers portfolio manager Peter Takaendesa said shifting its shareholding to th...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.