IHS Africa valued at fourteen times EBITDA, according to latest equity finance deal

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In order to finance their deals in Cameroon and Cote d’Ivoire, and development in Nigeria, IHS Africa has announced the sale of 25% equity for $125m to European investment firm Wendel and its subsidiary Oranje-Nassau. This continues IHS’s efforts to raise US$400m to finance their ongoing African business development.

Wendel becomes IHS Africa’s largest shareholder. Other shareholders include infrastructure services company UBC, the founder and main promoter of IHS, and existing first tier shareholders IFC, Investec AM, FMO, ECP and Skye Bank. Management currently hold 10% of the equity in IHS

IHS Africa overview

  • Operations in Nigeria, Ghana, Sudan and South Sudan
  • Services across full tower value chain: managed services, deployment and site ownership
  • 99.9% uptime on IHS co-location sites
  • FY2012 turnover was US$97m, of which US$38m came from co-location
  • FY2012 EBITDA was US$11m, of which US$10m came from co-location
  • Reported tenancy ratio: 1.67x

(Source: Wendel Investment in IHS analyst call)

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