Emirates Telecommunication : Etisalat, IHS ink tower sale deal

Mergers, Acquisitions and Financial Results

Etisalat Nigeria, the local unit of UAE-based telecoms group Etisalat, has announced the sale of 2,136 of its towers to IHS Holding as part of a broader strategy to drive improvements in the quality of its network performance and to accelerate the rollout of 2G and 3G coverage and new services to its customers.

The partnership with Nigeria-based IHS is designed to promote network sharing, ensure higher quality, sustain reliable mobile services, lower overall costs and also promote a cleaner environment through reduced diesel usage and increased investments in alternative energy solutions.

Under the terms of the transaction, which is expected to close later this year, IHS has committed to investing a further USD100 million in the acquired towers, particularly on advanced generators, efficient batteries and alternative energy solutions to reduce diesel consumption and improve efficiency of grid use. *'Continued demand for mobile connectivity along with increased consumption of data requires reliable and effective networks that are also cost efficient for network operators,' commented Matthew Willsher, CEO of Etisalat Nigeria, adding: 'The decision to sell our passive infrastructure to an experienced commercial partner, such as IHS, is part of our strategy to increase network coverage and capacity which is already rated number one for quality of service by the Nigerian Communications Commission.' Upon the conclusion of this transaction, IHS will own and manage over 6,540 towers in Nigeria, while the company also has operations in Cameroon, Côte d'Ivoire, Zambia and Rwanda.