IHS Towers Signs Agreement to Sell Kuwait Operations to Zain Group
IHS Towers has signed a definitive agreement to sell its 70% stake in IHS Kuwait to Zain Group. The deal includes approximately 1,675 owned sites and 700 managed sites in Kuwait. The transaction, valued at an enterprise value of $230 million, represents a multiple of 14.2x based on IHS Kuwait's estimated Adjusted EBITDA after leases. This multiple is notably higher than IHS Towers' current valuation. The deal is expected to close in the first half of 2025, subject to regulatory approvals. The proceeds will be primarily used to reduce company debt, aligning with IHS Towers' strategic review focused on shareholder value-creation.
IHS Towers ha firmato un accordo definitivo per vendere la sua partecipazione del 70% in IHS Kuwait a Zain Group. L'accordo include circa 1.675 siti di proprietà e 700 siti gestiti in Kuwait. La transazione, valutata a un valore aziendale di 230 milioni di dollari, rappresenta un multiplo di 14,2 volte basato sulla stima dell'EBITDA rettificato di IHS Kuwait dopo il pagamento dei canoni. Questo multiplo è notevolmente più alto rispetto alla valutazione attuale di IHS Towers. Si prevede che l'accordo si chiuda nella prima metà del 2025, soggetto alle approvazioni regolatorie. I proventi saranno utilizzati principalmente per ridurre il debito aziendale, in linea con la revisione strategica di IHS Towers focalizzata sulla creazione di valore per gli azionisti.
IHS Towers ha firmado un acuerdo definitivo para vender su participación del 70% en IHS Kuwait a Zain Group. El acuerdo incluye aproximadamente 1.675 sitios en propiedad y 700 sitios gestionados en Kuwait. La transacción, valorada en un valor empresarial de 230 millones de dólares, representa un múltiplo de 14,2 veces basado en el EBITDA ajustado estimado de IHS Kuwait después de arrendamientos. Este múltiplo es notablemente más alto que la valoración actual de IHS Towers. Se espera que el acuerdo se cierre en la primera mitad de 2025, sujeto a las aprobaciones regulatorias. Los ingresos se utilizarán principalmente para reducir la deuda de la empresa, alineándose con la revisión estratégica de IHS Towers centrada en la creación de valor para los accionistas.
IHS Towers는 IHS Kuwait의 70% 지분을 Zain Group에 판매하는 최종 합의를 체결했습니다. 이 거래에는 쿠웨이트 내 약 1,675개의 자산 사이트와 700개의 관리 사이트가 포함됩니다. 거래 가치는 2억 3천만 달러로, IHS Kuwait의 임대료를 차감한 추정 조정 EBITDA 기준으로 14.2배의 배수를 나타냅니다. 이 배수는 IHS Towers의 현재 평가보다 상당히 높습니다. 합의는 2025년 상반기에 규제 승인에 따라 종료될 것으로 예상됩니다. 수익금은 주로 회사 부채를 줄이는 데 사용되어, 주주 가치를 창출하는 데 집중한 IHS Towers의 전략적 검토와 일치합니다.
IHS Towers a signé un accord définitif pour vendre sa participation de 70 % dans IHS Kuwait au Zain Group. L'accord comprend environ 1 675 sites détenus et 700 sites gérés au Koweït. La transaction, évaluée à une valeur d'entreprise de 230 millions de dollars, représente un multiple de 14,2x basé sur l'EBITDA ajusté estimé d'IHS Kuwait après les baux. Ce multiple est particulièrement élevé par rapport à la valorisation actuelle d'IHS Towers. L'accord devrait se conclure au cours du premier semestre 2025, sous réserve des approbations réglementaires. Les recettes seront principalement utilisées pour réduire la dette de l'entreprise, conformément à l'examen stratégique d'IHS Towers axé sur la création de valeur pour les actionnaires.
IHS Towers hat eine endgültige Vereinbarung unterzeichnet, um seine 70% Beteiligung an IHS Kuwait an Zain Group zu verkaufen. Das Geschäft umfasst etwa 1.675 eigene Standorte und 700 verwaltete Standorte in Kuwait. Die Transaktion, die mit einem Unternehmenswert von 230 Millionen Dollar bewertet wird, repräsentiert ein Multiple von 14,2x basierend auf dem geschätzten bereinigten EBITDA von IHS Kuwait nach Abzügen. Dieses Multiple liegt deutlich über der aktuellen Bewertung von IHS Towers. Der Abschluss des Geschäfts wird im ersten Halbjahr 2025 erwartet, vorbehaltlich der regulatorischen Genehmigungen. Der Erlös wird in erster Linie zur Reduzierung der Unternehmensverschuldung verwendet, was mit der strategischen Überprüfung von IHS Towers übereinstimmt, die auf die Schaffung von Shareholder-Wert ausgerichtet ist.
- Sale transaction valued at $230 million enterprise value
- Premium valuation multiple of 14.2x EBITDA after leases
- Proceeds will be used to reduce company debt
- Transaction represents a significant premium to current IHS Towers valuation
- Divestment of revenue-generating assets in Kuwait market
Insights
The
The divestment of Kuwait operations, representing approximately 2,375 total sites (owned and managed), will help streamline IHS Towers' portfolio while providing significant cash influx. The deal's structure with Zain Group, a dominant player in Kuwait's telecom market, ensures operational continuity and demonstrates the inherent value of infrastructure assets in stable markets.
The terms of the transaction reflect an enterprise value1 of
Entering into this agreement is part of IHS Towers' ongoing strategic review targeted at shareholder value-creation options. As previously indicated, the proceeds will primarily be utilized to reduce company debt.
Sam Darwish, Chairman & CEO, IHS Towers, commented, “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
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 Zain Group: Zain is a leading telecommunications operator across the
Cautionary Language Regarding Forward-Looking Statements
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.
Certain definitions
We define Adjusted EBITDA by segment as income/(loss) for the period, before income tax expense/(benefit), finance costs and income, depreciation and amortization, impairment of withholding tax receivables, impairment of goodwill, business combination transaction costs, impairment of property, plant and equipment, intangible assets excluding goodwill and related prepaid land rent, reversal of provision for decommissioning costs, net (gain)/loss on sale of assets, share-based payment (credit)/expense, insurance claims and certain other items that management believes are not indicative of the core performance of our business.
1 Enterprise value is defined as anticipated cash consideration to be received plus borrowings less cash in the business and stated for a |
2 Estimated Adjusted EBITDA for the MENA segment for the year ended December 31, 2024, excluding non- |
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Source: IHS Holding Limited
FAQ
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