IHS Holdings, run by US-Nigerian businessman Sam Darwish, is considering selling its tower operations in Rwanda and Zambia. The New York-listed corporation is looking for potential purchasers for these assets as part of a debt-reduction strategy.
The move comes as IHS faces serious financial issues. In the second quarter of 2024, the company’s revenue fell by 20.3% to $435.4 million, down from $546.2 million in the same period the previous year. This decline is mostly due to the devaluation of the Nigerian naira, which has had a considerable impact on the company’s earnings.
In response to these issues, IHS is collaborating with financial advisers, notably JPMorgan Chase & Co., to evaluate strategic alternatives and fine-tune capital allocation methods. Despite the recent obstacles, the company remains hopeful about its future potential. “We believe in the underlying strength of our business and believe our equity is undervalued given Africa’s perceived place in the global markets,” the corporation’s spokesperson said.
The conversations over the potential sale of Rwandan and Zambian companies are still in the early stages, and the corporation may decide to keep these operations. Representatives from IHS and JPMorgan declined to comment on the continuing negotiations.
As part of its overall strategy, IHS announced ambitions to fund $500 million to $1 billion this summer. Since its listing on the New York Stock Exchange (NYSE) in 2021, the company’s stock has dropped by more than 78%.
Sam Darwish founded IHS Holding in 2001, and it remains a prominent player in the telecom infrastructure sector, operating 40,000 towers across Africa and ranking as the world’s third-largest independent international tower firm by tower count. The corporation has lately grown its reach by adding 385 tenants, amending 1,566 leases, and building 207 new buildings, including 136 in Brazil.
Furthermore, IHS has renewed contracts with MTN in various African markets, including Nigeria, South Africa, and Rwanda. These renewals strengthen IHS’ position as a key player in the region’s communications infrastructure sector. Sam Darwish, who has a 4.17 percent share in the company, remains a key role in the African telecom market.
