MTN-Rwanda sells off all towers to IHS Holding

IHS Holding, Africa’s largest independent mobile infrastructure company, has purchased all the MTN towers in Rwanda for an undisclosed fee.According to MTN Rwanda officials, the sale, which was completed on Friday, is aimed at improving efficiency in property management.The sale is a culmination of a long negotiation process with agreement dating back to December last year.“As per the agreement with IHS Holdings dated December 2012, we agreed to sell 524 towers, but we have since constructed more towers, all of which will be taken over by IHS Holdings,” said Paul Mugemangango, MTN-Rwanda senior manager, legal and corporate affairs.Under the agreement, IHS Holdings will acquire and operate the towers and related passive infrastructure and will invest in a build-to-suit programme to support MTN’s future requirements in the country.“Key infrastructure such as satellites and Radio remain with us… managing the towers is quite expensive because it requires generators, power, frequent maintenance and others. By selling of the towers, we will concentrate more on serving our clients ,” said Mugemangango.Shares in ZambiaMeanwhile, a statement from IHS Holdings indicates that they have also acquired towers in Zambia and the move follows two previous deals with IHS in Cameroon and Côté d’Ivoire, for a total of 1,758 towers.“In addition to unlocking value in our passive infrastructure, we remain cognizant of the need to contain and efficiently manage our cost structures across the Group as our markets mature and become more competitive,” MTN Group chief executive Safiso Dabengwa said in a statement.The deals are expected to close independently during the first half of 2014, subject to customary conditions.IHS Holdings chief executive Issam Darwish said: “These latest deals are testament to our commitment to client service, enabling the most efficient, effective and reliable networks for our clients.”He added: “Our strong and trusted relationship with MTN is important to us and we remain committed to reinforcing their focus on customer service excellence.”IHS’s tower portfolio is now pegged at 10,500 structures across Africa.

National

MTN-Rwanda sells off all towers to IHS Holding