IHS closes on tower deal with Airtel Zambia

IHS Holding has completed a deal to acquire and lease back 949 towers from Airtel Zambia.

Airtel Africa confirmed last December it would sell 1,100 towers in Zambia and Rwanda for a reported US$200 million to IHS, before leasing back the infrastructure for 10 years, under a contract that could be renewed.

Airtel said the deal allows it to focus “on its core business and customers, enables it to deleverage through debt reduction and will significantly reduce its ongoing capital expenditure on passive infrastructure”.

In July, Airtel said it had sold tower assets in five African countries, raising US$1.3 billion, and was in talks over similar divestment in another six markets.

IHS has spent US$500 million across Africa on power systems since Q1 2013, and said it will be rolling out renewable energy solutions across Airtel’s network.

By the end of 2016, the company said 80 per cent of its towers will be run on hybrid solar solutions.

Airtel had a similar deal in place with rival tower company Helios for the sale of 1,000 towers in Tanzania, but the transaction was terminated for undisclosed reasons.