IHS Towers, an independent owner, operator and developer of shared communications infrastructure, has signed a definitive agreement to sell its 70% interest in IHS Kuwait to Zain Group.
The sale includes its approximately 1,675 sites and an additional estimated 700 sites managed in Kuwait.
Zain is a leading telecommunications operator across the Middle East and Africa, serving 47.2 million active customers, with a commercial presence in eight countries.
IHS explains that the terms of the transaction reflect an enterprise value of US$230 million for the IHS Kuwait portfolio, implying a transaction multiple of 14.2x based on an estimated IHS Kuwait Adjusted EBITDA after leases. This, says IHS, represents a significant premium compared to the current valuation multiple of the IHS Towers group.
Entering into this agreement is part of IHS Towers' ongoing strategic review targeted at shareholder value-creation options. The proceeds will primarily be utilised to reduce company debt.
Sam Darwish, Chairman & CEO, IHS Towers, explains: “The transfer of IHS Kuwait to Zain, the largest mobile network operator in Kuwait, not only highlights the significant value contained within our portfolio but will also allow us to further reduce our net leverage.”
IHS has over 40,000 towers across its ten markets, including Brazil, Cameroon, Colombia, Côte d’Ivoire, Egypt, Kuwait, Nigeria, Rwanda, South Africa and Zambia.
This transaction is subject to customary closing conditions, including government and regulatory approvals, and is expected to close in the first half of 2025.
