What IHS Towers’ MTN deal means for South Africa
MTN are selling their South African towers, what does it mean for IHS Towers and for Africa’s leading telecom tower market?
IHS Towers announced on 17 November that it had signed a deal with MTN to acquire 5,709 towers in South Africa. The deal between Africa’s largest mobile operator and largest towerco also included a power-as-a-service (PaaS) deal at approximately 12,800 MTN sites, which means IHS Towers will manage power at sites it owns and sites at which MTN is just a tenant. The deal is valued at ZAR6.4bn (US$413.4mn), although due to the deal’s hybrid structure it is not possible to translate that to a price paid per tower.
The IHS Towers-MTN deal
The SLB and ESCO deals are expected to deliver revenues of US$220mn and adjusted EBITDA of US$80mn annually, in the first full year of operations.