IHS Holding (IHS Towers) has closed its previously announced transaction with TIM Brasil to acquire a controlling interest in FiberCo Solucoes de Infraestrutura (FiberCo). Going forward, FiberCo will operate under the name of I-Systems. IHS says it now owns a 51% stake in I-Systems while TIM controls the remaining 49% interest.
The initial asset base of I-Systems includes TIM’s secondary network infrastructure, covering approximately 6.4 million homes passed, of which 3.5 million are fibre-to-the-home (FTTH) and 3.4 million fibre-to-the-cabinet (FTTC). (Note: there is an FTTH/FTTC overlap at around 570,000 homes.) I-Systems is now responsible for the deployment of new secondary fibre infrastructure for TIM, and the operation and maintenance of all such infrastructure. TIM will continue as the anchor tenant across the network under a long-term master services agreement.
IHS paid a total consideration of BRL1.096 billion (USD198.9 million) to TIM and paid a further BRL233 million into I-Systems to fund future growth. As per the transaction agreements, IHS will contribute an additional amount into I-Systems of approximately BRL350 million in three instalments over three years.