In a press statement sent to Business Insider Africa, IHS Towers explained that the deal would see it take over ownership of as many as 7, 000 tower assets in Brazil. In addition to this, it would also take ownership of a secondary fibre network that covers about 6.4 million homes.
While commenting on the deal, the company's Chief Executive Officer, Sam Darwish, said the acquisition has helped to increase IHS Tower's attractiveness to stakeholders in Latin America.
“The acquisition of GTS’ SP5 portfolio will be our fifth transaction since we entered the region two years ago and is a testament to our continued commitment to serving the connectivity demands of Latin America. In the SP5 portfolio there are 2,115 sites strategically located across Brazil, increasing the attractiveness of IHS’ portfolio to our customers whether in Brazil or across our Latam operations,” Mr Darwish noted.
In the meantime, the deal is still subject to regulatory approvals, although it is expected to be finalised in this first quarter of 2022.
The statement by the company further noted that SP5 would be "integrated into IHS Towers’ existing Brazilian business with no employees transferring to IHS Towers under the acquisition".
Note that in the first full year following the deal, IHS Towers expects that the acquired assets would have delivered an adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization) of $36 million and revenue of $38 million, respectively.
Recall that IHS Towers had, in October last year, listed its shares on the New York Stock Exchange during an Initial Public Offering (IPO) that was priced at $21 per share. It became the largest Africa-focused company to list on the NYSE.
The company is one of the largest operators and developers of shared telecommunication infrastructure in the world. It operates across Africa, the Middle East and South America.