IHS Towers, one of the world’s largest telecom infrastructure operators, has announced the sale of a 70% stake in IHS Kuwait Limited to Zain Group, a leading telecom provider in the Middle East and Africa. Valued at $230 million, the deal includes 1,675 owned sites and 700 managed sites in Kuwait. It is expected to close in the first half of 2025, pending regulatory approvals.
Founded in Lagos, Nigeria, in 2001 by Sam Darwish, IHS Towers specialises in building and operating shared communications infrastructure. The company began in Africa but quickly expanded through strategic acquisitions. By 2014, it had acquired MTN’s tower portfolios in Côte d’Ivoire, Cameroon, Zambia, and Rwanda.
Today, IHS Towers operates over 40,000 towers across 10 countries, including South Africa, Nigeria, Brazil, Colombia, and Kuwait. This makes it one of the fastest-growing telecom tower operators globally.
A Strategic move for financial strength
The sale of IHS Kuwait is part of the company’s strategy to optimise its portfolio and improve financial stability. The agreement reflects a significant premium, with an enterprise value multiple of 14.2x based on IHS Kuwait’s estimated Adjusted EBITDA after leases. This valuation far exceeds the company’s overall multiple of 7.15x.
This premium underscores the strategic importance of IHS Towers’ assets in Kuwait, a high-growth market in the Middle East.
IHS Towers plans to use the proceeds to reduce its debt. According to Chairman and CEO Sam Darwish:
“Today’s announcement forms part of our wider ambition to drive shareholder value and enhance our balance sheet. The transfer of IHS Kuwait to Zain, the largest mobile network operator in Kuwait, not only highlights the significant value contained within our portfolio but will also allow us to further reduce our net leverage.”
This announcement follows a solid Q3 2024 for IHS Towers. The company recorded a 49% increase in organic revenue, despite a 10% decline in consolidated revenue due to the Nigerian Naira’s devaluation.
In Nigeria, where IHS has its largest footprint, the company renewed contracts with MTN Nigeria. These contracts raised its contracted revenue to $12.3 billion.
Expanding beyond Africa
IHS Towers is also scaling back capital expenditure and exploring other asset sales to maintain a healthy balance sheet. Over the years, the company has successfully expanded its footprint beyond Africa into Latin America and the Middle East.
Key partnerships, such as the 2020 acquisition of Cell Site Solutions and the sale and leaseback agreement with Zain, have helped it establish a presence in emerging markets.
IHS Towers works with major mobile network operators like MTN, Orange, Airtel, Etisalat, and Zain. Its portfolio spans Africa, Latin America, and the Middle East, supporting telecom infrastructure development in some of the world’s fastest-growing markets.
With this sale, IHS Towers reinforces its role as a global leader in telecommunications infrastructure, focused on creating value for its stakeholders while driving growth in emerging regions.
