MTN Group Ltd, Africa’s largest wireless firm, has announced that American Tower Corp (ATC) will assume control of its Nigerian tower operations from IHS Holding Ltd. starting in 2025.
Details
MTN has issued a tender for its tower contract which will expire with IHS Holdings in 2024 and 2025. ATC won the bid and will now control approximately 2,500 network sites in Nigeria.
The Bigger Picture
In 2022, MTN completed a deal with IHS to acquire over 5,700 tower sites in South Africa, leading to the current governance dispute.
This agreement has significant implications for IHS Towers, as Nigeria represents its largest market by revenue, primarily driven by its relationship with MTN.
ATC, a formidable African competitor, could pose challenges to IHS Towers, especially in the wake of a 9.4% revenue decline in the first quarter of 2023, attributed to the devaluation of the naira.
Previously, American Tower acquired MTN’s stake in tower operations in Uganda and Ghana.
Source: Bloomberg
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