ECP Portfolio Company, IHS, acquires MTN towers in Cote d’Ivoire and Cameroon
ECP’s Fund III portfolio company, IHS Holding Company (IHS), one of Africa’s leading telecommunication-tower infrastructure companies, has announced that they have entered into a definitive agreement with MTN Group Limited, Africa’s largest and most profitable mobile phone companies, which will see IHS acquire up to 931 mobile network towers from MTN Cote d’Ivoire and 827 towers from MTN Cameroon. The agreement states that IHS will become the 100% shareholder of the towers, and that MTN will become the anchor tenants for an initial term of 10 years.
The partnership between the companies will ensure a better service for consumers as it frees up MTN’s capital to invest in its customer base while allowing IHS to use their experience in telecommunications towers to maintain and grow the network. The agreement allows for IHS to expand their infrastructure within the two countries, ensuring MTN can expand their operations, while still allowing IHS the freedom to pursue opportunities with other wireless operators.
The deal sees IHS, already with a presence in Nigeria, Ghana, and South Sudan, expand their operations making them the largest independent tower operator in West Africa. Issam Darwish, CEO of IHS, commented on this, “This transaction is the next step in our strategy for expansion across Africa; we continue to invest in countries with attractive economic and demographic profiles. This transaction firmly positions IHS as a leading mobile tower infrastructure company in sub-Saharan Africa with resources for continued expansion and technological innovation.”