IHS Towers exits Brazil Fiber in $453m deal to refocus on higher-return assets

IHS Holding Ltd (NYSE: IHS) has agreed to sell its 51 percent stake in Brazilian fiber operator I-Systems to telecom operator TIM S.A., marking its exit from the country’s fiber sector as the company sharpens its focus on lower capital expenditure and higher-return businesses.

The transaction values I-Systems at an enterprise value of $452.6 million and is expected to close later in 2026, subject to regulatory approvals and customary closing conditions.

I-Systems, a specialist provider of shared optical fibre infrastructure in Brazil, covers approximately 9.3 million homes passed, including about 6.4 million fibre-to-the-home (FTTH) connections, and spans roughly 22,250 route kilometres as of December 31, 2024.

The sale forms part of IHS Towers’ broader strategic initiatives aimed at enhancing shareholder value and concentrating investment on capital-light infrastructure segments, particularly its core tower operations across emerging markets.

“Today’s announcement to sell I-Systems to TIM forms part of our strategic initiatives targeted at shareholder value creation, designed to help focus our growth on lower capex, higher return businesses,” said Sam Darwish, chairman and chief executive officer of IHS Towers.

He thanked employees and partners for building the company’s fibre footprint in Brazil.

For TIM Brasil, which already owned 49 percent of I-Systems, the acquisition consolidates full control of the fibre network as competition in Brazil’s broadband market intensifies.

“This transaction marks another strategic move by TIM to strengthen its presence in the broadband market, a defining front for the company in 2025,” said Alberto Griselli, chief executive officer of TIM Brasil. He added that the deal would improve end-to-end connectivity quality, enhance customer experience, and support future FTTH expansion while maintaining profitability and cash generation discipline.

The deal underscores diverging strategies in telecom infrastructure, with tower companies such as IHS increasingly prioritising asset-light models amid high financing costs, while integrated telecom operators double down on fixed broadband networks to drive customer retention and bundled service offerings.

J.P. Morgan is acting as financial adviser to IHS Towers on the transaction.

The sale signals a continued recalibration in global telecom infrastructure investment, as operators and infrastructure firms reassess capital allocation in response to macroeconomic pressures and evolving connectivity demand.