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Popular telecom tower operator, IHS Holdings Ltd. is reportedly exploring a potential sale of its towers in Rwanda and Zambia.
According to the People, some proceeds from the sales would be used to pay down debt.
IHS Holding To Sell Rwanda and Zambia Towers
This significant move comes after IHS laid off 100 employees after suffering a massive $1.9 billion loss in 2023—a shocking 304% jump from the previous year.
However, the tower sales align with IHS’s debt-reduction plan, which is a key element. IHS chairman and CEO Sam Darwish said, “Finally, regarding capital allocation, we continue to expect that proceeds from those initiatives will be used primarily to pay down our debt.”
“However, we will also consider deploying excess proceeds through share buybacks and/or introducing a dividend policy.”
The sales of the towers in Rwanda and Zambia will ensure the company fulfills its goals.
Decision To Sell Based On Recent Troubles In The Company
Note, that IHS has close to 1,900 towers in Zambia and just under 1,500 in Rwanda out of a portfolio of approximately 40,000 across its whole business.
The majority of its assets are in Africa and the Middle East, but it has just north of 8,000 towers in Latin America, the vast majority being in Brazil.
Also Read: IHS Towers Lays Off 100 Employees as the Nigerian Naira Crashes
However, according to Bloomberg, deliberation on the sales are still ongoing. IHS could decide to keep the assets for longer or not.
IHS shares have fallen more than 80% since the company was listed in New York in 2021. Essentially, like many of its peers in the passive infrastructure space, IHS is working hard to keep spending down and reduce leverage.
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