IHS Towers to sell Rwanda unit to Paradigm Tower Ventures

LONDON & KIGALI, Rwanda - IHS Holding Limited (NYSE: IHS), a major global provider of shared communications infrastructure, has entered into an agreement to sell its Rwandan subsidiary, IHS Rwanda Limited, to Paradigm Tower Ventures. This transaction includes approximately 1,465 sites and is expected to be completed in the second half of 2025, pending customary closing conditions and regulatory approvals.

The deal values IHS Rwanda at an enterprise value of $274.5 million, which is a multiple of 8.3 times its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) after leases. This valuation is notably higher than the current group valuation multiple for IHS Towers, which according to InvestingPro data stands at an EV/EBITDA of 7.21x. The company’s overall financial health is rated as GOOD by InvestingPro’s comprehensive analysis, with liquid assets exceeding short-term obligations.

Sam Darwish, Chairman & CEO of IHS Towers, remarked on the strategic decision to divest from the Rwandan market, emphasizing the move as a part of the company’s broader strategy to enhance shareholder value. Darwish expressed gratitude for the success achieved in Rwanda over the past decade, attributing it to the support from local partners, customers, and the Rwandan government’s investor-friendly policies.

Stephen Harris, Co-founder of Paradigm Tower Ventures, expressed enthusiasm for the Rwandan market, citing the high demand for shared wireless infrastructure. Harris outlined the company’s commitment to continuing to provide high-quality and secure infrastructure services to mobile network operators in the region.

IHS Towers is an independent owner, operator, and developer of shared communications infrastructure, with over 39,000 towers across eight markets focused on emerging economies. With annual revenue of $1.71 billion and EBITDA of $771.56 million, the company maintains a strong market position. Paradigm Tower Ventures, backed by a consortium of equity and debt financiers, is a new platform aimed at expanding shared wireless infrastructure in Sub-Saharan Africa. For deeper insights into IHS Towers’ financial health and growth prospects, investors can access detailed analysis and 10+ additional ProTips through InvestingPro’s comprehensive research platform.

This press release includes forward-looking statements related to the anticipated sale and its potential impact on IHS Towers’ strategic review process. While these statements are based on current expectations, they are subject to risks and uncertainties that could affect the company’s future financial performance.

The information in this article is based on a press release statement from IHS Holding Limited.

In other recent news, IHS Holding reported a strong financial performance for the fourth quarter of 2024, with earnings per share (EPS) of $0.73, significantly exceeding the forecast of $0.01. The company’s revenue also surpassed expectations, reaching $437.8 million compared to the anticipated $423.27 million. IHS Holding provided optimistic guidance for 2025, projecting revenue between $1.68 billion and $1.71 billion. Analysts at Citi raised the company’s stock target to $6.00, maintaining a Buy rating, citing IHS’s potential for organic growth and asset monetization strategies. Similarly, TD Cowen increased the price target to $16.00, also maintaining a Buy rating, following IHS’s better-than-expected fourth-quarter results and favorable conditions in Nigeria. The company’s management expressed confidence in its strategic initiatives and the macroeconomic environment in Nigeria, which is expected to support growth. IHS Holding aims to achieve asset dispositions between $0.5 billion and $1.0 billion, further supporting its financial health. These developments reflect a positive outlook for IHS Holding as it continues to execute its strategic plans effectively.

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