$826m since 2013 (2)
No.1 in EMEA
3 Board members
IHS is a leading provider of passive telecom tower infrastructure for mobile phone operators. Over the last 15 years, the Group has successfully developed along the entire telecom tower value chain, from construction to leasing to maintenance. It provides market-leading service to its customers, who are among the leading telecom operators such as MTN, Orange, 9mobile and Airtel.
With its investment in IHS, Wendel made its first direct investment in Africa, thereby demonstrating its intention to gain exposure to the rapid growth the continent is experiencing and to participate therein. Wendel has chosen a company whose positive momentum is expressed in its projects, its high-quality management and its outlook for balanced and profitable growth in several important and promising African nations., especially in Nigeria which represents about 70% of Group revenue.
To support IHS’s pan-African growth strategy, Wendel invested $826 million between 2013 and 2016, by participating in five capital increases alongside IHS’s shareholders, who are primarily major financial institutions active in economic development and top-tier private equity companies.
Among these are Emerging Capital Partners, the leader in private equity in Africa with more than 60 investments since 1997, International Finance Corporation (IFC), part of the World Bank Group, FMO, the Netherlands development bank, and Investec Asset Management, one of the largest investors in listed and unlisted companies in Africa. In 2014, new investors chose to support the growth of IHS, in particular Goldman Sachs, IFC Global Infrastructure Fund, African Infrastructure Investment Managers (Old Mutual and previously Macquarie), and the Singapore and Korean sovereign wealth funds GIC and KIC.
In addition, Wendel has brought together five US and European family investors (incl. FFP, Sofina, ERES and Luxempart) to invest alongside it in IHS. In addition to the $826 million it has invested, Wendel has thus far raised an additional $220 million through an IHS co-investment vehicle that Wendel manages and whose voting rights Wendel exercises.
On February 1st, 2017, MTN Group (“MTN”) finalized the exchange of its 51% stake in Nigeria Tower InterCo B.V, the operating holding company of INT Towers Limited, which manages more than 9,000 towers in Nigeria, for an additional direct stake in IHS Group. As a result of this transaction MTN’s economic interest in IHS Group increased from around 15% to around 29%. To preserve IHS’ independence, MTN’s voting rights, representation and access to information on IHS will remain limited. Following this simplification of IHS’ capital structure, Wendel holds 21.3% of the shares of IHS directly and remains IHS’ largest shareholder in voting rights with unchanged governance rights.
With regards to external growth, the acquisition of c. 1,600 towers from Zain in Kuwait is still pending regulatory authorizations that should come in the coming months. Moreover, on March 27, 2019 IHS entered into an agreement with Zain for a leaseback contract covering 8,100 towers in Saudi Arabia with a 15-year lease agreement. This operation is subject to the customary regulatory approvals and finalization conditions. This operation is in line with the Company's growth strategy in the Middle East.
Founder, Executive Vice Chairman
and Group CEO
Board of Directors of IHS Holding