IHS Holding Limited (‘IHS Towers’) has completed the acquisition of 5,701 towers in South Africa from South African MNO MTN South Africa in a R6.4-billion transaction, on a cash and debt free basis – excluding IFRS 16 lease liabilities.

According to a statement released by the companies, under the agreement, IHS Towers is also providing Power Management Services to MTN SA on approximately 13,000 sites, including the acquisition portfolio, across South Africa.

The companies added that according to the 12-month Revenue and Adjusted EBITDA annualised for FY 2022 outlook, the acquired assets as well as the provision of Power Management Services across MTN SA’s portfolio are expected to deliver Revenue and Adjusted EBITDA of approximately US$192-million and US$85-million, respectively, in the first full year of operations.

The Power Management Services component of the transaction is aligned to IHS Towers' existing service offering in other African markets – this service will be delivered to the acquired sites, as well as to other third-party sites on which MTN SA is present. This service will primarily involve power systems and security at sites.

IHS Towers will own 70% of the South African Towers business with the remaining 30% to be owned by a B-BBEE consortium.

IHS Towers added, “With this acquisition, IHS now has an operational footprint in eleven emerging markets with seven 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 Towers Chairman and CEO, commented “The closure of this acquisition is an important milestone in IHS’ growth story. IHS was founded in Africa and the region continues to be a key anchor for our company. Through this transaction, IHS has now entered the most industrialised economy in Africa as South Africa’s largest independent tower operator. MTN Group have been a long-term partner of IHS, and I am delighted that we will expand that collaboration and facilitate mobile connectivity in South Africa. We will leverage our deep operational excellence and engineering expertise, honed across our other African markets, to meet South Africa’s increasingly sophisticated data demands and expedite the roll-out of new technologies.”

Ralph Mupita, MTN Group President and CEO commented “With the regulatory approvals and all conditions precedent to the deal finalised, we are pleased to have IHS bring global capabilities to our South Africa network. Additionally, with this deal, we continue to deliver on our Asset Realisation Programme, strengthening the balance sheet and improving returns.”

Charles Molapisi, MTN SA CEO, added, “Over the years, MTN SA has built and maintained the best network in the country, and we believe that in IHS, we have found a partner with the necessary experience and expertise to maintain and enhance this critical part of the business. This international partnership also brings foreign investment into the market to create greater competition.”

According to the companies, this transaction has received the necessary regulatory approval from the South African Competition Commission.