LONDON & KUWAIT-IHS Holding Limited, (NYSE: IHS) (“IHS Towers”), one of the world’s largest independent owners, operators and developers of shared communications infrastructure by tower count, has signed a definitive agreement to sell IHS Towers’ 70% interest in IHS Kuwait Limited (“IHS Kuwait”), including its approximately 1,675 sites and approximately 700 additional managed sites in Kuwait, to Zain Group. The transaction is subject to customary closing conditions, including governmental and regulatory approvals, and is expected to close in the first half of 2025.
The terms of the transaction reflect an enterprise value1 of $230 million for the IHS Kuwait portfolio, implying a transaction multiple of 14.2x based on an estimate of IHS Kuwait’s adjusted EBITDA after leases2. This represents a significant premium to the current valuation multiple of the IHS Towers Group.
The conclusion of this agreement is part of IHS Towers’ ongoing strategic review, which aims to identify options for creating value for shareholders. As previously indicated, the proceeds of the sale will be used primarily to reduce the company’s debt.
Sam Darwish, Chairman and CEO of IHS Towers, said: “Today’s announcement is part of our broader ambition to create shareholder value and improve our balance sheet. The transfer of IHS Kuwait to Zain, the largest mobile network operator in Kuwait, not only highlights the significant value contained in our portfolio but will also enable us to further reduce our net leverage.”
About IHS Towers: IHS Towers is one of the world’s largest independent owners, operators and developers of shared communications infrastructure by tower count, focused exclusively on emerging markets. The company owns more than 40,000 towers across its 10 markets, including Brazil, Cameroon, Colombia, Côte d’Ivoire, Egypt, Kuwait, Nigeria, Rwanda, South Africa and Zambia. For more information, please email: communications@ihstowers.com or visit: www.ihstowers.com
About Zain Group: Zain is a leading telecommunications operator in the Middle East and Africa, serving 47.2 million active customers as of September 30, 2024. With a commercial presence in 8 countries, Zain provides mobile and data services in Kuwait, Bahrain, Iraq, Jordan, Saudi Arabia, Sudan, and South Sudan. In the UAE, ZainTECH, the Group’s one-stop digital and ICT solutions provider, is playing a key role in transforming businesses and governments across the MENA region. Similarly, UAE-based Zain Omantel International (ZOI) is revolutionizing the international wholesale telecommunications landscape as the first wholesale powerhouse serving regional operators, international carriers, and large-scale global operators. In Morocco, Zain holds a 15.5% stake in “INWI”, through a joint venture. Zain is listed on the Kuwait Stock Exchange (ticker: ZAIN). For more information, please email info@zain.com or visit: www.zain.com
Caution Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “forecast,” “potential” or “continue,” or the negative of these terms or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations, and although we believe that this information provides a reasonable basis for these statements, it may be limited or incomplete, and our statements should not be read as indicating that we have conducted an exhaustive investigation of or reviewed all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to place undue reliance on them. You should read this press release and the documents we refer to in this press release with the understanding that our actual future results, performance, and achievements may differ materially from what we anticipate. More information about these assumptions, risks and uncertainties is available in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F for the year ended December 31, 2023. All of our forward-looking statements are qualified by the following cautionary statements. These forward-looking statements speak only as of the date of this press release. Except as required by applicable law, we undertake no obligation to, and expressly disclaim any obligation to, publicly update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise.
Some definitions
We define Segment Adjusted EBITDA as income/(loss) for the period before income tax expense/(benefit), financial expenses and income, depreciation, amortization, impairment of withholding tax receivables, impairment loss, transaction costs related to the business combination, impairment of property, plant and equipment, intangible assets excluding value and related prepaid land rents, reversal of provision for decommissioning costs, net (gain)/loss on sale of assets, share-based payment (credit)/expense, insurance proceeds and certain other items that management believes are not representative of the core performance of our business.
| 1 Enterprise value is defined as the anticipated cash consideration to be received plus borrowings less cash in the enterprise and stated for a 100% ownership interest. |
| 2 Estimated adjusted EBITDA for the MENA segment for the year ending December 31, 2024, excluding non-Kuwait segment costs of $0.4 million, and reduced by $12 million for additional leasing costs in Kuwait. |
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