MTN raises economic interest in HIS InterCo to 29%
As part of its consolidation drive this year, leading data and voice Telecom Company, MTN Nigeria is set to exchange its 51% interest in Nigeria Tower InterCo, the parent company of telecom tower operator INT Towers, for an additional shareholding in IHS Holding.
According to MTN, the transaction means its economic interest in IHS Group will increase from approximately 15% to approximately 29%.
A statement issued by the company said there is no condition precedent to the transaction and it is expected to close once the new shares in IHS have been issued during the first quarter of 2017, it adds.
The transaction enables MTN to simplify its tower ownership structure and diversify its tower infrastructure exposure across the IHS Group, which operates in a number of markets across Africa.
The statement added that the new deal will better enable MTN to crystallise value for shareholders in the future. The investment in IHS allows MTN to benefit economically from its previously owned passive infrastructure and continued network investment.
The statement quoted the executive chairman, Phuthuma Nhleko as saying that “The transaction represents a significant step in MTN’s long-standing partnership with IHS. It simplifies our ownership structure and diversifies our tower investments across the IHS Group. IHS Group is extremely well positioned for future growth and build-out from 3G upgrades and the move to LTE across its key markets.”
In his remarks, Issam Darwish, executive vice chairman and Group CEO of IHS Group said “The MTN transaction and partnership was transformational for IHS and has allowed us to invest a significant amount of capital to better serve our customers, accelerate our growth and the development of critical telecommunications infrastructure across Africa”.
“We are delighted to announce the transaction which simplifies the shareholding structure of IHS Group and marks an important milestone as we strengthen our capital structure and our position as the leading independent tower company in EMEA.