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JOHANNESBURG, Nov 17 (Reuters) – Africa\u2019s largest mobile operator MTN Group said on Wednesday it will sell and leaseback more than 5,000 towers in South Africa to London-based IHS Towers for 6.4 billion rand ($412 million) to help lower costs.<\/p>\n
MTN, with 277.3 million subscribers across 21 countries in Africa and the Middle East, is in the middle of a 25 billion rand divestment plan launched in March 2019 to simplify its portfolio over the next three-to-five years.<\/p>\n
The tower sales form part of that plan, with proceeds expected to be reinvested in strategic growth initiatives, such as securing high demand spectrum radio frequencies and lowering debt.<\/p>\n
The deal entails the sale and leaseback of 5,709 towers, comprising about 4,000 greenfield and 1,700 rooftop sites.<\/p>\n
It also includes the outsourcing of power and related services across the MTN South Africa site footprint of approximately 12,800, MTN said.<\/p>\n
Long-term income streams tied to inflation have turned towers into prized investment targets here in a world of low returns. These networks are set to expand to accommodate next-generation 5G internet and eventually link up billions of smart devices.<\/p>\n
Last month IHS Holding, the parent company of IHS Towers, which is partly owned by MTN, completed a $378 million IPO on the New York Stock Exchange. ($1 = 15.5304 rand)<\/p>\n