MTN, IHS Towers to Resolve Governance Issues after Deal
MTN Group and IHS Tower have announced strategic partnership to boost mobile connectivity, and drive digital inclusions. The related companies also review plan to resolve governance issues as part of the next move to drive business growth.
In a statement, the group said following the announcement last week that IHS Holding Limited and MTN Group had renewed and extended communications infrastructure deals in Nigeria, and also completed the renewal of all contracts, the companies said on Tuesday that with the commercial relationship now firmly established for the next decade.
Both company said they will now work constructively to find a mutually agreeable resolution to governance issues previously raised.
Last week, the companies announced the agreement to renew and extend all Nigerian tower master lease agreements until December 2032.
The contracts include new financial terms that provide what the parties believe to be a more sustainable split between local and foreign currency.
With this, IHS Towers and MTN Group have now completed the renewal of approximately 26,000 MTN tenancies on IHS Towers infrastructure across six African markets – Nigeria, Rwanda, Côte d’Ivoire, Cameroon, Zambia and South Africa.
MTN Group owns approximately 26% in IHS Towers, a stake which pre-dates the tower company’s listing on the New York Stock Exchange in 2021.
Commenting, Ralph Mupita MTN Group President and CEO said: “The renewal of the various contracts across our markets into the next decade put MTN operations in the respective markets onto a more sustainable footing.
“We remain focused on ensuring our networks are well invested, have high availability and have the headroom to meet the growing and structural demand for data going into the future.
“These renewals are key to those priorities. We look forward to working constructively with IHS on the outstanding governance issues now that commercial arrangements have been concluded.”
Sam Darwish, Chairman & CEO, IHS Towers, said, “As our largest customer and longest serving partner, we are proud to have completed the renewal of all tenancies with MTN Group in our African markets.
“Today, we reinforce our strategic relationship and commit to increased operational stability, by securing our revenue streams into the next decade, and leveraging our shared innovation to deliver critical connectivity and support digital inclusion across the African continent.
“We are excited by the next phase of our commercial partnership and welcome the opportunity to work constructively for the benefit of the end user.” #MTN, IHS Towers to Resolve Governance Issues after Deal
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