MTN Group Ltd. and IHS Holdings Ltd. agreed to a 6.4-billion-rand ($410 million) tower-deal in South Africa, according to a statement quoted by Bloomberg.
The sale-and-lease back transaction covers 5,709 sites, as well as power and related services to MTN’s entire tower portfolio in the country, the telecoms provider said. The money from the sale will be reinvested in securing additional spectrum in South Africa, and also give it more flexibility with its finances.
The deal provides IHS an entry into Africa’s most developed economy, and additional revenue of about $220m in the first year of operations, it said. The transaction will see IHS become the largest independent tower operator in South Africa.
MTN’s cross-town rival Vodacom said last week it plans to separate its telecoms towers portfolio into a new unit, while South Africa’s third-largest operator Telkom plans to list its towers and masts business before March 2022.
MTN shares have surged 161% in 2021 and surpassed competitor Vodacom’s market capitalization along the way.
Meanwhile MTN Nigeria, through its Foundation in a statement, said it will provide free medical care to Nigerians Lagos, Anambra, Rivers, Kano, Gombe and Kwara in the third phase of the ‘MTN Y’ello Doctor Medical Intervention Scheme’.
Residents in selected communities and markets will get medical screening, diagnosis, consultations, treatment and drug prescription, as well as referral services.
Executive Secretary, MTN Foundation, Odunayo Sanya who at the commissioning of the project said the Foundation will continue to contribute to the expansion of access to healthcare services by making primary healthcare available to people in communities nationwide. This is in line with the UN’s Sustainable Development Goal three – ‘Good health and well-being’.