IHS Towers Signs Agreement to Sell Kuwait Operations to Zain Group

IHS Holding Limited, (NYSE:IHS) ("IHS Towers"), one of the largest independent owners, operators and developers of shared communications infrastructure in the world by tower count, has signed a definitive agreement to sell IHS Towers' 70% interest in IHS Kuwait Limited ("IHS Kuwait") including its approximate 1,675 sites and an additional approximately 700 sites managed in Kuwait to Zain Group. The transaction is subject to customary closing conditions, including government 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 estimated IHS Kuwait Adjusted EBITDA after leases². This 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. As previously indicated, the proceeds will primarily be utilized to reduce company debt.

Sam Darwish, Chairman & CEO, IHS Towers, commented, "Today's announcement forms part of our wider ambition to drive shareholder value and enhance our balance sheet. 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."

About IHS Towers: IHS Towers is one of the largest independent owners, operators and developers of shared communications infrastructure in the world by tower count and is solely focused on the emerging markets. The Company has over 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: [email protected] or visit: www.ihstowers.com

About Zain Group: Zain is a leading telecommunications operator across the Middle East and Africa, serving 47.2 million active customers as of 30 September 2024. With a commercial presence in 8 countries, Zain provides mobile voice and data services in: Kuwait, Bahrain, Iraq, Jordan, Saudi Arabia, Sudan and South Sudan. In UAE, ZainTECH, the Group's one-stop digital and ICT solutions provider, is playing a key role in the transformation of enterprise and government clientele across the MENA region. Also, UAE based, Zain Omantel International (ZOI) is revolutionizing the international telecommunications wholesale landscape as the premier wholesale powerhouse serving regional operators, international carriers, and global hyper scalers. In Morocco, Zain has a 15.5% stake in ‘INWI', through a joint venture. Zain is listed on the Boursa Kuwait (stock ticker: ZAIN). For more, please email [email protected] or visit: www.zain.com

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Certain definitions

We define Adjusted EBITDA by segment as income/(loss) for the period, before income tax expense/(benefit), finance costs and income, depreciation and amortization, impairment of withholding tax receivables, impairment of goodwill, business combination transaction costs, impairment of property, plant and equipment, intangible assets excluding goodwill and related prepaid land rent, reversal of provision for decommissioning costs, net (gain)/loss on sale of assets, share-based payment (credit)/expense, insurance claims and certain other items that management believes are not indicative of the core performance of our business.

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