Telcos: IHS Acquisition Will Boost Industry Sustainability, Network Resilience 

Emma Okonji

Telecoms operators (Telcos), under the aegis of the Association of licensed Telecoms Operators of Nigeria (ALTON), have said the recent acquisition of IHS Towers by MTN Group is a welcome development that will enhance industry stability and boost network resilience in the telecoms industry.

ALTON Chairman, Mr. Gbenga Adebayo, said this in Lagos, while fielding questions from the media.

According to him, “We think the recent acquisition of IHS Towers by MTN Group is a very good development for the industry, even though it is basically a commercial decision that has been taken at the ownership level. It says quite a bit of things to us as industry players. Two years ago, we were talking about sustainability of the industry, and this acquisition is a clear example that will lead to industry stability, because the new owners will invest in IHS Towers and further expand its operations to enhance customer experience. Again, the transaction speaks to the state of health of the industry that is already attracting investors. Nobody will invest in a market that has no guarantee of stability or return on investment. So for us, it shows that we have a healthy sector that is capable of attracting the right investment.”

Adebayo further said: “The acquisition will also lead to better service delivery for end users, and boost customers’ belief in the company. The acquisition also shows some forms of regulatory stability in our industry, which will go a long way to boost investor’s confidence in our industry.”

“The kind of investment we are seeing recently is a clear sign that there is regulatory stability and certainty in our industry, which speaks also to the strength and the benefit and the reputation of our regulator. In terms of policy, no investor will invest in an industry where the policy environment is not right. ALTON commends the owners, it also commends the transaction and all the players, and we just wish them every success in their businesses. The bottom line is that mergers and acquisitions are best fit for any thriving market, and I say so because we are all witnesses to the positivity that merger and acquisition bring,” Adebayo further said.

Giving details of IHS Towers, Adebayo said: “The company is a member of ALTON, and it plays a very strong role in our industry, providing a total of 19,000 towers across the country. We are proud to say that it’s a company founded in Nigeria by two brothers in 2001, which has grown to become a global company, providing critical telecoms infrastructure to industry players. So it’s a company born in Nigeria, and grown for the world, and not a company born in the world, and brought into Nigeria. We must give credit to the founders who believed in Nigeria and the future of Nigeria. For them to have raised the company to a point that it became so attractive that the biggest operator in Africa is now interested in investing in it, we must give them credit for the work they have done.”

Last week, MTN Group reached an agreement to acquire IHS Towers, the largest independent towers, operators and developers of shared communication infrastructure globally, at an enterprise value of approximately $6.2 billion.

The deal followed weeks of negotiations between both parties, but was eventually concluded last week.

Chairman and CEO of IHS Towers, Sam Darwish, described the agreement as a compelling opportunity to crystallise value built over the company’s 25-year history.

According to him, “The acquisition announcement creates a compelling opportunity that provides certainty and immediate returns for our shareholders, enabling them to crystallise the significant value generated during our strategic review.”

MTN’s Group President and CEO, Ralph Mupita, said the transaction would strengthen the company’s strategic and financial position as digital infrastructure becomes increasingly central to economic development on the continent.

“The transaction gives us a unique opportunity to buy back our towers and strengthen our ability to be partners for progress to the nation-states in which we operate,” Mupita said.