IHS, HTN towers agree on Africa’s first mobile infrastructure consolidation

IHS Holding Limited (“IHS”), the largest mobile telecommunications infrastructure provider in Africa, Europe and the Middle East, and Helios Towers Nigeria Limited (“HTN”), the pioneer of tower infrastructure sharing in Africa, have announced that they have entered into an agreement according to which IHS will acquire HTN’s portfolio of 1,211 diversified tower sites throughout Nigeria.

HTN and IHS established the mobile telecommunications infrastructure industry in Nigeria in the early 2000s and this transaction will be the first in-market consolidation in Africa. The transaction will allow the continued delivery of best-in-class solutions to customers and additional investment in infrastructure upgrades.

Under the terms of the transaction and subject to requisite regulatory approvals, IHS will acquire the entire issued share capital of HTN from HTN Towers Plc which is ultimately owned by Helios Investment Partners, Pembani Group, First City Monument Bank and other minority shareholders. Upon completion of the transaction, IHS will have full operational control of the underlying business and will market independent infrastructure sharing services to mobile network operators and internet service providers in Nigeria. Business will continue as usual for HTN’s towers which will be seamlessly integrated into the IHS network and connected to IHS’s state of the art network operating centre which monitors each tower 24 hours a day, seven days a week. The transaction is expected to close in Q2 2016.

IHS is committed to maintaining the existing relationship and position with the bondholders. IHS believes the benefits of the transaction extend to all stakeholders. Its deep shareholder base includes global institutional investors such as Wendel, GIC, IFC, ECP and KIC, and the strength of IHS’ balance sheet enhances the HTN credit profile. The net leverage position of the combined entity is likely to be approximately 50% lower than the current HTN stand-alone leverage position. In addition, there are meaningful synergies that management believes will be derived from the transaction given a considerable part of the IHS portfolio is located in Nigeria.

Jumoke Akiyode