IHS Holding, the telecom infrastructure giant led by U.S.-Nigerian businessman Sam Darwish, is exploring the sale of its tower operations in Rwanda and Zambia. The New York-listed company is reaching out to potential buyers for these assets as part of a strategy to reduce debt.
The move comes amid significant financial challenges for IHS. In the second quarter of 2024, the company reported a sharp revenue decline of 20.3 percent, falling to $435.4 million from $546.2 million during the same period last year. This decrease is largely attributed to the devaluation of the Nigerian Naira, which has significantly impacted the company's earnings.
In response to these challenges, IHS is working with financial advisers, including JPMorgan Chase Co., to assess strategic alternatives and refine its capital allocation strategies. Despite the current setbacks, the company remains optimistic about its long-term prospects. "We believe in the underlying strength of our business and believe our equity is undervalued given Africa's perceived place in the global markets," the company stated.
IHS seeks $500 million to $1 billion fundingThe discussions regarding the potential sale of the Rwandan and Zambian assets are still in the preliminary stages, and the company may decide to retain these businesses. Representatives for both IHS and JPMorgan declined to comment on the ongoing negotiations.
