Table of Contents
Key Points
- IHS Holding, led by Sam Darwish, is exploring the sale of its Rwandan and Zambian tower operations to reduce debt.
- The company faced a 20.3% revenue drop in Q2 2024, largely due to Nigerian Naira devaluation.
- IHS plans to raise $500 million to $1 billion and has renewed contracts with MTN in several African markets.
IHS Holding, the telecom infrastructure giant led by U.S.-Nigerian businessman Sam Darwish, is exploring the sale of its tower operations in Rwanda and Zambia. The New York-listed company is reaching out to potential buyers for these assets as part of a strategy to reduce debt.
The move comes amid significant financial challenges for IHS. In the second quarter of 2024, the company reported a sharp revenue decline of 20.3 percent, falling to $435.4 million from $546.2 million during the same period last year. This decrease is largely attributed to the devaluation of the Nigerian Naira, which has significantly impacted the company’s earnings.
In response to these challenges, IHS is working with financial advisers, including JPMorgan Chase & Co., to assess strategic alternatives and refine its capital allocation strategies. Despite the current setbacks, the company remains optimistic about its long-term prospects. “We believe in the underlying strength of our business and believe our equity is undervalued given Africa’s perceived place in the global markets,” the company stated.
IHS seeks $500 million to $1 billion funding
The discussions regarding the potential sale of the Rwandan and Zambian assets are still in the preliminary stages, and the company may decide to retain these businesses. Representatives for both IHS and JPMorgan declined to comment on the ongoing negotiations.
As part of its broader strategic efforts, IHS disclosed plans this summer to raise between $500 million and $1 billion. Since its listing on the New York Stock Exchange (NYSE) in 2021, the company’s shares have fallen by more than 78 percent.
Renewed MTN deals support growth
Founded in 2001 by Sam Darwish, IHS Holding remains a key player in the telecom infrastructure sector, operating 40,000 towers across Africa and ranking as the third-largest independent multinational tower company globally by tower count. The company has recently expanded its footprint, adding 385 tenants, making 1,566 lease amendments, and constructing 207 new towers, including 136 in Brazil.
Additionally, IHS has renewed its contracts with MTN across several African markets, including Nigeria, South Africa, and Rwanda. These renewals reinforce IHS’s position as a pivotal player in the region’s telecom infrastructure sector. Sam Darwish, who holds a 4.17 percent stake in the company, continues to be a prominent figure in the African telecom industry.
