Africa-focused towerco IHS Holding has secured US$490m of financing, split between equity and debt, as the company plans to make more acquisitions on the continent.
Most of the money – US$420m – was provided by its existing shareholders as well as…
Africa-focused towerco IHS Holding has secured US$490m of financing, split between equity and debt, as the company plans to make more acquisitions on the continent.
Most of the money – US$420m – was provided by its existing shareholders as well as new investors: Goldman Sachs; the IFC Global Infrastructure Fund (GIF); and African Infrastructure Investment Managers.
French holding Wendel, IHS’ largest shareholder with a 35% stake, provided US$152m out of the US$420m.
The remaining US$70m took the form of senior debt provided by Standard Chartered and will go directly towards expanding the company’s business in Zambia.
Overall in the last 12 months, IHS has raised more than US$1.5bn.
“IHS will utilise the proceeds of the round to finance acquisitions, help its customers expand coverage and capacity by building new towers and continue investing in alternative energy and green solutions that have a positive impact on the communities throughout Africa,” it said in a statement.
TelecomFinance reported previously that IHS is among the bidders for Bharti Airtel’s African towers.
The whole portfolio has been valued at around US$1.8bn-US$2bn for 15,000 sites. Sources familiar with the matter indicated that the Indian operator is selling its assets on a country-by-country basis, which means the assets could be split between two or more towercos. Helios and Eaton are also among the potential suitors, TelecomFinance was told.
Several other sales processes are ongoing in Africa, including in Nigeria and Egypt.
Terry Rhodes, co-founder of Eaton Towers, told the audience at the recent TelecomFinance 2014 Conference that the number of sites on offer in Africa now exceeded what local towercos could buy, with around 40,000 towers on the block.
In late December, IHS bought 1,228 towers from MTN in Zambia and Rwanda for about US$120m. Overall, the towerco claims to own and manage more than 10,500 sites on the continent.
In late January, its shareholders approved a plan to delist IHS Nigeria from the Nigerian Stock Exchange. Under the agreed scheme, stockholders will receive N4.35 (US$0.03) per share, or US$118m in total. Instead of selling their shares, they also have the option to buy into the unit’s future structure.