IHS closes $230 million deal to sell Kuwait unit to Zain Group

Timilehin Adejumobi -
Key Points
  • IHS sells 70% stake in IHS Kuwait to Zain for $230 million, optimizing assets and strengthening financials.
  • Zain Group enhances its dominance in Kuwait, adding 1,675 telecom sites to boost operations.
  • IHS Holding faces a 10% revenue drop, eyes growth with strategic divestitures and resource reallocation.

IHS Holding, a global telecom infrastructure leader headed by U.S.-Nigerian telecom tycoon Sam Darwish, has completed the $230 million sale of its 70 percent stake in IHS Kuwait to regional telecom giant Zain Group. This deal represents a pivotal shift in IHS's strategy to optimize its global assets and strengthen its financial footing amid a volatile market.

The transaction, which includes 1,675 telecom sites and 700 managed locations, marks a strategic realignment for IHS as it refines its operations and reallocates resources to higher-growth markets. While regulatory approvals remain pending, the deal is expected to close by mid-2025.

Streamlining for strategic growth

The Kuwait divestiture is part of IHS Towers' ongoing strategic review designed to enhance shareholder value. By exiting Kuwait, IHS is not only optimizing its portfolio but also positioning itself for future growth with a sharpened focus on its core assets and financial resilience.

For Zain Group, the acquisition consolidates its dominant position in Kuwait, further solidifying its status as the country’s leading telecom operator. With the addition of 1,675 telecom sites, Zain expands its network footprint and operational efficiency, further strengthening its competitive edge in the Middle East.

Operating across eight countries with over 47 million customers, including key markets in Saudi Arabia, Iraq, and Sudan, Zain continues to diversify and expand its services, with a growing emphasis on telecom infrastructure and data offerings.

Strategic moves amid headwinds

Founded in 2001 by Sam Darwish, IHS Holding manages over 40,000 telecom towers across Africa, making it the third-largest independent tower company globally. Despite its expansive operations, the company has faced financial hurdles. In Q3 2024, IHS reported a 10 percent drop in revenue, largely attributed to the Nigerian naira's devaluation.

Beyond business, IHS has also prioritized corporate social responsibility. The company recently launched a humanitarian initiative in Maiduguri, Nigeria, installing four solar-powered boreholes to assist flood-affected communities.