MTN South Africa and IHS Towers sign sale and leaseback agreement

17 Nov 2021

Independently-owned tower operator IHS Holding Limited (IHS Towers) has entered into a sale and leaseback agreement with MTN South Africa covering 5,709 telecommunications towers across the country. The cash consideration for the transaction – under which IHS Towers will also provide Power-as-a-Service (PaaS) to MTN at approximately 12,800 sites across South Africa – is ZAR6.4 billion (USD417.3 million). Furthermore, the acquired assets as well as the provisions of PaaS across MTN’s portfolio are expected to deliver revenue and adjusted EBITDA of approximately USD220 million and USD80 million, respectively, in the first full year of operations (based on a current exchange rate). Further growth is expected through a multi-year commitment for a portion of MTN’s new towers. On completion, IHS Towers will own 70% of the South African Towers business with the remaining 30% owned by a B-BBEE consortium.

South Africa, IHS Holding (IHS Towers), MTN South Africa