African Venture Capital Association 23 October 2012
ECP’s Fund III portfolio company, IHS Holding Company (IHS), one of Africa’s leading telecommunication-tower infrastructure companies, has announced that they have entered into a definitive agreement with MTN Group Limited, Africa’s largest and most profitable mobile phone companies, which will see IHS acquire up to 931 mobile network towers from MTN Cote d’Ivoire and 827 towers from MTN Cameroon. The agreement states that IHS will become the 100% shareholder of the towers, and that MTN will become the anchor tenants for an initial term of 10 years.
The partnership between the companies will ensure a better service for consumers as it frees up MTN’s capital to invest in its customer base while allowing IHS to use their experience in telecommunications towers to maintain and grow the network. The agreement allows for IHS to expand their infrastructure within the two countries, ensuring MTN can expand their operations, while still allowing IHS the freedom to pursue opportunities with other wireless operators.
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