MTN group is set to forfeit some of its towers to one of the largest telecommunications infrastructure providers in the world by tower count, IHS Towers in a new deal that will see the latter acquiring 5,709 telecommunication towers from the group for $412 million.
The deal will see IHS provide Power-as-a-Service (PaaS) to MTN at approximately 12,800 sites across South Africa – including the acquired 5,709 sites.
The deal also qualifies IHS Towers to own 70 percent of the South African Towers business with the remaining 30 percent owned by a B-BBEE consortium. Though, the company has said it is having discussions with a consortium of B-BBEE investors, which will be completed in due course.
The acquired assets and the provision of PaaS across MTN’s portfolio will expectedly deliver revenue and adjusted EBITDA of $220 million and $80 million, respectively in the first full year of operations.
IHS Towers’ Chairman, Sam Darwish who disclosed this new agreement, said he was exceptionally proud to announce IHS’ creation of the largest independent tower operator in South Africa as it represents the start of a new chapter in South Africa’s telecommunications infrastructure sector.
