IHS Holding Limited announced on December 2, 2024, that it has signed a definitive agreement to sell its 70% interest in IHS Kuwait Limited to Zain Group. This transaction includes approximately 1,675 sites and an additional 700 sites managed in Kuwait. The sale is part of IHS Towers' ongoing strategic review aimed at enhancing shareholder value and optimizing its balance sheet.
The transaction is subject to customary closing conditions, including government and regulatory approvals, and is expected to close in the first half of 2025. The terms of the transaction reflect an enterprise value of $230 million for the IHS Kuwait portfolio. This implies a transaction multiple of 14.2x based on an estimated IHS Kuwait Adjusted EBITDA after leases.
The enterprise value represents a significant premium compared to the current valuation multiple of the IHS Towers group. The proceeds from this divestiture will primarily be utilized to reduce company debt, further strengthening IHS Towers' financial position and reducing its net leverage.
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