MTN - SA's second mobile operator and Africa's biggest - has agreed to sell its tower portfolios in Rwanda and Zambia to African telecommunications infrastructure company IHS.
The operator said in a statement today it would sell a total of 1 228 mobile network towers to IHS's subsidiaries in Rwanda and Zambia, comprised of 524 and 704 towers respectively, for undisclosed amounts.
MTN says the sale of the towers is in line with its "asset optimisation strategy", encompassed in the company's new strategic framework, and builds on two previous deals with IHS in Cameroon and C^ot'e d'Ivoire, for a total of 1 758 towers.
MTN CEO Sifiso Dabengwa says: "In addition to unlocking value in our passive infrastructure, we remain cognizant of the need to contain and efficiently manage our cost structures across the [MTN] group as our markets mature and become more competitive."
He says the company is confident these transactions are a positive step towards freeing up management time to focus on products and services.
CEO of IHS Issam Darwish says the telecoms company's "strong and trusted" relationship with MTN is a vital one.
Under the agreements, IHS will acquire and operate the towers and related passive infrastructure and will invest in a build-to-suit program to support MTN's future requirements in both countries. MTN Rwanda and MTN Zambia will become the respective anchor tenants on the towers for an initial term of 10 years.
The transactions bring the total number of towers in IHS's portfolio to 10. MTN says IHS will market services on the towers in Rwanda and Zambia, promoting tower sharing and colocation to help drive network improvements, better service to subscribers and economic growth.
Each transaction is expected to close independently during the first half of 2014, subject to customary closing conditions.
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