JSE-listed telecommunications group MTN is selling its cellular base stations in Rwanda and Zambia to IHS. The group has a total of 1 228 network towers in the two countries – 532 in Rwanda and 704 in Zambia.
The value of the transactions has not been disclosed.
Under the agreements, IHS will acquire and operate the towers and related passive infrastructure and will invest in a “build to suit” programme to support MTN’s future requirements in both countries. MTN Rwanda and MTN Zambia will become the respective anchor tenants on the towers for an initial term of 10 years.
The transactions bring the total number of towers in IHS’s portfolio to 10 500. IHS will market services on the towers in Rwanda and Zambia, promoting tower sharing and colocation to other operators.
Each transaction is expected to close independently during the first half of 2014.
“The sale of the towers is in line with MTN’s asset optimisation strategy, which is encompassed in its new strategic framework and builds on two previous deals with IHS in Cameroon and Côté d’Ivoire, for a total of 1 758 towers,” the operator says in a statement.
“In addition to unlocking value in our passive infrastructure, we remain cognisant of the need to contain and efficiently manage our cost structures across the group as our markets mature and become more competitive,” says group CEO Sifiso Dabengwa. — (c) 2013 NewsCentral Media
