American-Nigerian mogul Sam Darwish’s IHS consults JPMorgan amid standoff with MTN

IHS Holding, the leading telecom infrastructure firm headed by American-Nigerian telecom mogul Sam Darwish, is seeking advice from JPMorgan Chase & Co to address a growing confrontation with its largest shareholders over the company’s management.

According to Bloomberg, IHS Holding is concerned that proposed governance changes by MTN Group and Wendel SE, who collectively own about 45 percent of the company, may pave the way for a hostile takeover.

In response, shareholders representing approximately 48 percent of IHS shares have submitted proposals to align the company’s governance with best practices observed by US-listed firms and enhance market perceptions.

However, Wendel refutes the notion that these proposals constitute a takeover effort and accuses members of the IHS board and management of employing misdirection tactics.

The shareholder dispute coincides with a significant drop in IHS shares, which have plummeted by approximately 60 percent since the company’s initial public offering in New York in 2021.

Aside from governance concerns, some shareholders are apprehensive about capital allocation and asset pricing as IHS Holding looks to diversify beyond its primary market, Nigeria, and expand into Latin America and Persian Gulf countries.

IHS Holding, founded by Sam Darwish in 2001, remains the largest telecom infrastructure group in terms of tower count across Africa, Latin America, and the Middle East.

In the first quarter of 2023, the company experienced a 49.3-percent drop in profit, from $15.1 million to $7.66 million, while revenue surged by 35.1 percent, climbing from $446.13 million to $602.53 million.

Despite the profit dip, IHS Holding remains confident in its ability to achieve its goals for 2023. With its expansive tower network and strategic acquisitions, the company continues to play a crucial role in the global telecom infrastructure landscape.

Sam Darwish’s leadership has been pivotal in driving growth for IHS Holding, and the company’s total assets have risen to $6.49 billion while experiencing a marginal decrease in retained losses to $3.3 billion.