South Africa's MTN Sells Towers in Subsidiary Operations for $284 Million
Published on: 15th Oct 2012
Note -- this news article is more than a year old.
South Africa's MTN Group says that it has sold its towers in C te d'Ivoire and Cameroon to the towers operator, IHS for a total of USD284 million.
Under the terms of the deal, IHS will acquire up to 931 towers for US $141 million in Cote d'Ivoire and up to 827 towers in Cameroon for $143 million. Under the definitive agreements, IHS will be a 100% shareholder of the tower companies set up in each country to manage the towers and other passive infrastructure.
MTN will remain the anchor tenant on the towers being purchased, on commercial terms, for an initial term of ten years. The agreements include a commitment from IHS to roll out a build-to-suit programme to support MTN's future requirements in both countries.
IHS is a leading African telecommunications infrastructure provider headquartered in Nigeria. Founded in 2001, IHS provides services across the full tower value chain - managed services, deployment and site ownership.
The transactions are expected to close during the first quarter of 2013.
MTN added that it continues to view infrastructure sharing as one of its key strategies in driving efficiencies in its operations across Africa and the Middle East and will continue to pursue appropriate initiatives in that regard.