IHS Towers completes fiber exit in Brazil amid major portfolio overhaul

IHS Towers has completed the sale of its 51 percent stake in Brazilian fiber network company I-Systems to TIM S.A., marking its full exit from the fiber sector in Brazil as part of a wider restructuring of its business.

The transaction, first announced in February with an enterprise value of $452.6 million, gives TIM full ownership of the shared optical fiber platform it previously co-owned, the companies said on Thursday.

IHS Fiber Brasil, a unit of New York-listed IHS Holding Ltd, sold the stake to TIM, which already held the remaining 49 percent. The deal is the latest step in IHS Towers’ strategic shift toward a simpler, lower-capex portfolio focused on its core tower operations in high-growth emerging markets.

I-Systems runs a neutral, open-access fiber network spanning roughly 22,250 route kilometers. As of late 2024, it passed about 9.3 million homes, with around 6.4 million connected via fiber-to-the-home (FTTH).

IHS Towers, one of the world’s largest independent tower companies with more than 37,000 sites across Africa and Latin America, has been reshaping its operations aggressively.

In February, it agreed to sell its entire Latin American tower portfolio, around 8,860 sites in Brazil and Colombia, to Macquarie Asset Management for an enterprise value of about $952 million.

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The company also entered a deal in mid-February to be acquired by South Africa’s MTN Group, its largest shareholder, for roughly $6.2 billion enterprise value ($8.50 per share in cash). That transaction, which would take IHS private, is expected to close later in 2026 after the completion of the Latin America divestments.

“This transaction supports our initiatives to concentrate growth in lower capex, higher return businesses,” Sam Darwish, IHS Towers chairman and CEO, said when the I-Systems sale was first announced.

Read also: Shrinking towers, rising cash: IHS cuts footprint while boosting cash before MTN takeover

J.P. Morgan advised IHS Towers on the fiber deal.

For TIM, Brazil’s third-largest mobile operator, regaining full control of I-Systems strengthens its fixed broadband infrastructure. TIM already leads in 5G coverage and has nationwide 4G reach. Full ownership supports its push for fixed-mobile convergence in a competitive market.

The fiber sale closed after receiving the necessary regulatory approvals. It follows a similar move by rival Vivo, which earlier regained full control of its own fiber joint venture.