IHS Towers and MTN Group Strengthen Strategic Partnership to Deliver Mobile Connectivity and Drive Digital Inclusion
IHS Towers (NYSE: IHS) and MTN Group (JSE: MTN) have strengthened their strategic partnership by renewing and extending communications infrastructure deals across six African markets. The agreement covers approximately 26,000 MTN tenancies on IHS Towers infrastructure in Nigeria, Rwanda, Côte d'Ivoire, Cameroon, Zambia, and South Africa, extending until December 2032.
The renewed contracts include new financial terms aimed at providing a more sustainable split between local and foreign currency. With the commercial relationship secured for the next decade, both companies will work to resolve previously raised governance issues. MTN Group owns about 26% stake in IHS Towers, predating the tower company's NYSE listing in 2021.
IHS Towers (NYSE: IHS) e MTN Group (JSE: MTN) hanno rafforzato la loro partnership strategica rinnovando e ampliando i contratti per le infrastrutture di comunicazione in sei mercati africani. L'accordo riguarda circa 26.000 locazioni MTN sulle infrastrutture di IHS Towers in Nigeria, Rwanda, Costa d'Avorio, Camerun, Zambia e Sudafrica, estendendosi fino a dicembre 2032.
I contratti rinnovati includono nuovi termini finanziari mirati a garantire una suddivisione più sostenibile tra valuta locale e valuta estera. Con la relazione commerciale sicura per il prossimo decennio, entrambe le aziende lavoreranno per risolvere questioni di governance sollevate in precedenza. MTN Group possiede circa il 26% delle azioni di IHS Towers, antecedendo la quotazione della compagnia di torri al NYSE nel 2021.
IHS Towers (NYSE: IHS) y MTN Group (JSE: MTN) han fortalecido su asociación estratégica al renovar y ampliar los acuerdos de infraestructura de comunicaciones en seis mercados africanos. El acuerdo abarca aproximadamente 26,000 arrendamientos de MTN en la infraestructura de IHS Towers en Nigeria, Rwanda, Costa de Marfil, Camerún, Zambia y Sudáfrica, extendiéndose hasta diciembre de 2032.
Los contratos renovados incluyen nuevos términos financieros destinados a proporcionar una división más sostenible entre la moneda local y la moneda extranjera. Con la relación comercial asegurada para la próxima década, ambas empresas trabajarán para resolver problemas de gobernanza planteados anteriormente. MTN Group posee aproximadamente el 26% de participación en IHS Towers, antes de la cotización en NYSE de la empresa de torres en 2021.
IHS 타워스 (NYSE: IHS)와 MTN 그룹 (JSE: MTN)은 아프리카의 여섯 개 시장에서 통신 인프라 계약을 갱신하고 확장하여 전략적 파트너십을 강화했다. 이 계약에는 나이지리아, 루안다, 코트디부아르, 카메룬, 잠비아, 남아프리카 공화국의 IHS 타워스 인프라에서 약 26,000개의 MTN 임대가 포함되며, 2032년 12월까지 연장된다.
갱신된 계약은 현지 통화와 외환 간의 더 지속 가능한 분할을 제공하기 위한 새로운 재정 조건을 포함한다. 향후 10년간 상업적 관계가 확보되면서, 양사는 이전에 제기된 거버넌스 문제를 해결하기 위해 협력할 것이다. MTN 그룹은 IHS 타워스의 약 26%의 지분을 보유하고 있으며, 이는 2021년 NYSE 상장 이전의 일이다.
IHS Towers (NYSE: IHS) et MTN Group (JSE: MTN) ont renforcé leur partenariat stratégique en renouvelant et en étendant des contrats d'infrastructure de communication dans six marchés africains. L'accord couvre environ 26 000 locations MTN sur l'infrastructure d'IHS Towers au Nigeria, au Rwanda, en Côte d'Ivoire, au Cameroun, en Zambie et en Afrique du Sud, et est prolongé jusqu'à décembre 2032.
Les contrats renouvelés incluent de nouveaux termes financiers visant à offrir une répartition plus durable entre la monnaie locale et la monnaie étrangère. Avec la relation commerciale sécurisée pour la prochaine décennie, les deux entreprises s'efforceront de résoudre des problèmes de gouvernance soulevés auparavant. MTN Group détient environ 26 % de participation dans IHS Towers, avant l'introduction en bourse de l'entreprise de tours en 2021.
IHS Towers (NYSE: IHS) und MTN Group (JSE: MTN) haben ihre strategische Partnerschaft gestärkt, indem sie die Verträge über Kommunikationsinfrastruktur in sechs afrikanischen Märkten erneuert und ausgeweitet haben. Die Vereinbarung umfasst ca. 26.000 MTN-Mieten auf der Infrastruktur von IHS Towers in Nigeria, Ruanda, Elfenbeinküste, Kamerun, Sambia und Südafrika und gilt bis Dezember 2032.
Die erneuerten Verträge beinhalten neue finanzielle Bedingungen, die darauf abzielen, eine nachhaltigere Aufteilung zwischen lokaler und ausländischer Währung zu schaffen. Mit der gesicherten Handelsbeziehung für das nächste Jahrzehnt werden beide Unternehmen daran arbeiten, zuvor angesprochene Governance-Probleme zu lösen. Die MTN Group hält etwa 26% der Anteile an IHS Towers, bevor das Tower-Unternehmen 2021 an der NYSE gelistet wurde.
- Renewal and extension of tower lease agreements until 2032, securing long-term revenue streams
- New financial terms providing a more sustainable currency split
- Strengthened strategic partnership with MTN Group, IHS Towers' largest customer
- Expansion of infrastructure deals across six African markets
- Commitment to increased operational stability and innovation
- Unresolved governance issues with major shareholder MTN Group
The renewal and extension of tower lease agreements between IHS Towers and MTN Group is a significant development for both companies. This deal secures approximately 26,000 MTN tenancies across six African markets until 2032, providing long-term revenue stability for IHS Towers. The new financial terms, which include a more balanced split between local and foreign currency, address currency risk concerns - a important factor in African markets.
For investors, this agreement offers increased predictability in IHS Towers' cash flows and potentially improved profit margins. The extended partnership also positions both companies to capitalize on the growing demand for data services in Africa. However, the mention of unresolved governance issues suggests potential risks that need monitoring. Overall, this deal strengthens IHS Towers' market position and provides a solid foundation for future growth.
This partnership renewal marks a strategic win for both IHS Towers and MTN Group. By securing long-term agreements across multiple African markets, they've created a stable platform for network expansion and technological innovation. The focus on meeting "increasingly sophisticated data demands" indicates a forward-looking approach to 5G deployment and IoT services.
The deal's structure, balancing local and foreign currency exposure, shows adaptability to African market dynamics. This approach could become a model for other telco partnerships in emerging markets. The commitment to "operational stability" and "shared innovation" suggests potential for cost efficiencies and improved service quality. However, the unresolved governance issues between a major shareholder (MTN) and IHS Towers warrant careful attention from investors, as they could impact future decision-making and corporate strategy.
On 7 August 2024, the companies announced the agreement to renew and extend all Nigerian tower Master Lease Agreements until December 2032. The contracts include new financial terms that provide what the parties believe to be a more sustainable split between local and foreign currency. With this, IHS Towers and MTN Group have now completed the renewal of approximately 26,000 MTN tenancies on IHS Towers infrastructure across six African markets –
MTN Group owns approximately
Sam Darwish, Chairman & CEO, IHS Towers, said, “As our largest customer and longest serving partner, we are proud to have completed the renewal of all tenancies with MTN Group in our African markets. Today, we reinforce our strategic relationship and commit to increased operational stability, by securing our revenue streams into the next decade, and leveraging our shared innovation to deliver critical connectivity and support digital inclusion across the African continent. We are excited by the next phase of our commercial partnership and welcome the opportunity to work constructively for the benefit of the end user.”
MTN Group President and CEO Ralph Mupita said: “The renewal of the various contracts across our markets into the next decade put MTN operations in the respective markets onto a more sustainable footing. We remain focused on ensuring our networks are well invested, have high availability and have the headroom to meet the growing and structural demand for data going into the future. These renewals are key to those priorities. We look forward to working constructively with IHS on the outstanding governance issues now that commercial arrangements have been concluded.”
Building on their 20+ year relationship as commercial partners, both companies will leverage their shared operational excellence and engineering expertise to meet the end users’ increasingly sophisticated data demands. Together, IHS Towers and MTN Group have a track record of navigating complex operating environments and challenging macroeconomic conditions to deliver connectivity crucial to economic growth and digital inclusion.
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About IHS Towers: IHS Towers is one of the largest independent owners, operators and developers of shared communications infrastructure in the world by tower count and is solely focused on the emerging markets. The Company has over 40,000 towers across its 10 markets, including
About the MTN Group: Launched in 1994, the MTN Group is a leading digital operator with a clear vision to lead the delivery of a bold new digital world to our customers. We are inspired by our belief that everyone deserves the benefits of a modern connected life. The MTN Group, which this year celebrates its 30th anniversary, is listed on the JSE Securities Exchange in
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This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates," “believes,” “estimates,” “forecast,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. You should read this press release and the documents that we reference in this press release with the understanding that our actual future results, performance and achievements may be materially different from what we expect. Further information on such assumptions, risks and uncertainties is available in our filings with the US Securities and Exchange Commission, including our Annual Report on Form 20-F for the fiscal year ended December 31, 2023. We qualify all of our forward-looking statements by these cautionary statements. These forward-looking statements speak only as of the date of this press release. Except as required by applicable law, we do not assume, and expressly disclaim, any obligation to publicly update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events or otherwise.
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Giles Bethule / Akash Lodh
FGS Global
Giles.Bethule@fgsglobal.com / Akash.Lodh@fgsglobal.com
+44 207 251 38 01
Source: IHS Towers
FAQ
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