Telecommunications tower operator IHS Holding is exploring a potential sale of its businesses in Rwanda and Zambia, people with knowledge of the matter said.

The New York-listed company plans to gauge interest from potential buyers for its operations in the two countries, according to the people. Some proceeds from any disposals would be used to pay down debt, the people said, asking not to be identified as the information is private.

IHS operates 40 000 towers across Africa, Latin America and the Middle East, according to its website.

The company’s revenue has been hurt by the devaluation of the naira in Nigeria, the company’s biggest market. The currency slumped more than 70% against the dollar since President Bola Tinubu came to power in May 2023 and began implementing foreign exchange and other economic reforms.

IHS said in March that it’s working with advisers including JPMorgan Chase & Co to evaluate strategic alternatives for the business across its portfolio and capital allocation priorities.

Despite the currency devaluation in Nigeria, “we believe in the underlying strength of our business and believe our equity is undervalued given Africa’s perceived place in the global markets”, the telecoms infrastructure firm said.

Capital raise

Deliberations are at an early stage and IHS could decide to keep the assets for longer, the people said. Representatives for IHS and JPMorgan declined to comment.

IHS recently gave more details on its plans, announcing that it needs to raise between US$500-million and $1-billion. Shares of IHS have fallen more than 80% since the company listed in New York in 2021. — Loni Prinsloo, Vinicy Chan and Jillian Deutsch, (c) 2024 Bloomberg LP