IHS Towers: A Strategic Shift in Kuwait

In a strategic move, IHS Towers has signed a definitive agreement to sell its Kuwait operations to Zain Group, marking a significant shift in the telecommunications infrastructure landscape. This transaction, valued at $230 million, highlights IHS Towers' commitment to debt reduction and shareholder value creation.

The sale, expected to close in the first half of 2025, will see IHS Towers offload its 70% interest in IHS Kuwait, including approximately 1,675 sites and an additional 700 managed sites. This strategic divestment will reduce IHS Towers' tower count by around 2,375 sites, representing a substantial decrease from its current portfolio of over 40,000 towers across 10 markets.

IHS Towers' decision to sell its Kuwait operations aligns with its long-term strategic objectives and growth plans. By divesting these assets, IHS Towers aims to reduce company debt and enhance its balance sheet. The transaction multiple of 14.2x based on estimated IHS Kuwait Adjusted EBITDA after leases reflects a significant premium compared to the current valuation multiple of the IHS Towers group.



The proceeds from this sale will primarily be utilized to reduce company debt, further strengthening IHS Towers' financial position. This strategic divestment allows IHS Towers to focus on higher-growth markets, redirecting capital and resources to boost growth in other markets like Nigeria, where it has the largest tower portfolio. This move underscores IHS' commitment to optimizing its portfolio to enhance shareholder value.



The sale of IHS Kuwait to Zain Group is a testament to the value contained within IHS Towers' portfolio and the attractiveness of Kuwait's telecommunications market. As a leading independent owner, operator, and developer of shared communications infrastructure, IHS Towers continues to navigate the dynamic landscape of emerging markets, seeking opportunities to create value for shareholders while reducing debt and enhancing its balance sheet.

In conclusion, IHS Towers' strategic sale of its Kuwait operations to Zain Group is a significant milestone in the company's journey towards debt reduction and shareholder value creation. This transaction not only highlights the value of IHS Towers' portfolio but also underscores the potential of Kuwait's telecommunications market. As IHS Towers continues to optimize its portfolio, investors can expect a steady focus on growth and value creation in the company's remaining markets.