MTN Agrees Sale Of Rwanda, Zambia Network Towers To IHS [Ventures Africa]
(Ventures Africa Via Acquire Media NewsEdge) VENTURES AFRICA – African telecom giant MTN Group has agreed to sell its tower portfolios in Rwanda and Zambia to IHS Holding Limited (IHS), a leading tower operator in Africa.
MTN will sell a total of 1,228 mobile network towers to IHS's subsidiaries in Rwanda and Zambia, comprised of 524 and 704 towers respectively, for undisclosed amounts, an official statement revealed.
The sale of the towers is in line with MTN's asset optimization strategy which is encompassed in MTN's new strategic framework and builds on two previous deals with IHS in Cameroon and Côté d'Ivoire, for a total of 1,758 towers.
"In addition to unlocking value in our passive infrastructure, we remain cognizant of the need to contain and efficiently manage our cost structures across the Group as our markets mature and become more competitive," said Sifiso Dabengwa, President and CEO of MTN Group.
"We are confident these transactions are a positive step towards freeing up management time to focus on products and services, thereby fulfilling our mission of 'making our customers' lives a whole lot brighter."
Under the agreements, IHS will acquire and operate the towers and related passive infrastructure and will invest in a build-to-suit program 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 ten years.
The transactions bring the total number of towers in IHS's portfolio to 10,500 extending its leadership in the African market. IHS will market services on the towers in Rwanda and Zambia, promoting tower sharing and collocation to help drive network improvements, better service to subscribers and economic growth.
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