TheCable

IHS Holding Limited (IHS) and Helios Towers Nigeria Limited (HTN), the pioneer tower infrastructure sharers in Africa, have reached an agreement on the first mobile infrastructure in Africa.

IHS, the largest mobile telecommunications infrastructure provider in Africa, Europe and the Middle East, announced the agreement, which will see it acquire HTN’s portfolio of 1,211  diversified  tower sites throughout Nigeria.

The firms say 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

The share capital 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 by the minute.

The transaction is expected to close in Q2 2016.

With a population of nearly 180 million people, increasing smartphone penetration and limited fixed line infrastructure, Nigeria’s vibrant wireless industry is expected to record more growth.

Inder Bajaj, CEO of HTN, said his team had “built a unique urban centric portfolio across Nigeria with the highest tenancy ratio in the industry and a diversified tenant  mix”.

“IHS is the natural buyer of our business and we believe their deep knowledge and extensive experience in the sector will help to continue the strong level of customer service already being achieved by HTN,” he added.

“The transaction  is significant in that it combines Africa’s two original tower companies with the aim of strengthening service offering to customers,” Issam Darwish, executive vice chairman of IHS, said.

“The growing data traffic and increased smartphone present an exciting market opportunity for IHS, with the potential for up to 40,000 more towers required to meet this demand.”

HIS says over 95 percent of its employees are African, and it employs “close to 40,000 people directly and indirectly through its exclusive   subcontractors”.