MTN’s Nigerian subsidiary has signed a deal to promote its towers to pan African tower operator, IHS Holdings. The worth of the transaction was not revealed, however regarded as value within the area of USD2 billion.
Underneath the phrases of the transaction and topic to requisite regulatory approvals, the 9,151 towers will likely be transferred to a brand new firm which will probably be owned collectively by MTN and IHS.
IHS may have full operational management of the underlying enterprise. The brand new towers firm will market impartial infrastructure sharing companies to different cell operators and Web Service Suppliers (ISPs) in Nigeria. The transaction is predicted to shut in This fall 2014.
That is the ninth tower transaction for IHS and its fifth with MTN following the transactions in Cote d’Ivoire, Cameroon, Rwanda and Zambia that happened in 2012 and 2013.
On completion of this transaction, IHS will handle over 20,000 towers in Africa.
As a part of the deal, the brand new towers firm has dedicated greater than USD500 million of extra funding over 4 years into tower upgrades and a upkeep programme to enhance high quality of service and improve the client expertise on the MTN Nigeria community.