According to industry reports, IHS Holding, a prominent telecommunications tower operator, is currently exploring the potential sale of its businesses in Rwanda and Zambia. This strategic move is aimed at potentially alleviating some of its outstanding debt.
The company, listed in New York, boasts an extensive portfolio comprising 40,000 towers across Africa, Latin America, and the Middle East.
The company’s operations have encountered challenges owing to the devaluation of the naira in Nigeria, which stands as the company’s primary market. Since President Bola Tinubu came to power in May 2023 and implemented foreign exchange and economic reforms, the Nigerian currency has depreciated by more than 70% against the dollar. This significant currency devaluation has had a considerable impact on IHS’s revenue.
To further its strategic objectives, IHS has partnered with JPMorgan Chase & Co and other advisors to assess various strategic alternatives for its business across its portfolio and to determine its capital allocation priorities. This venture aligns with the company’s goal to bolster its financial position and chart a sustainable path forward.
Despite the challenges posed by the currency devaluation in Nigeria, IHS remains confident in the inherent strength of its business and asserts that its equity is undervalued, particularly within the global markets. This confidence is bolstered by the company’s robust telecom infrastructure presence and unwavering commitment to delivering value to its stakeholders.
In recent disclosures, IHS articulated its need to secure a substantial capital infusion, outlining its requirement to raise between $500 million and $1 billion. The company’s shares have experienced a significant decline, plummeting by over 80% since its listing in New York in 2021. This development underscores the need for strategic manoeuvres to fortify the company’s financial standing and stimulate growth opportunities.
As deliberations continue, IHS is meticulously evaluating the potential sale of its operations in Rwanda and Zambia while also considering the possibility of retaining these assets for an extended duration. This careful approach indicates the company’s conscientious and forward-thinking strategy as it navigates the evolving dynamics within the telecommunications industry.
