MTN Group Ltd. (JSE:MTN) announced on Friday that American Tower Corp. (NYSE:AMT) will take over its Nigerian tower operations from IHS Holding Ltd. (NYSE:IHS) starting from 2025. The move comes as leases for approximately 2,500 of its network sites in Nigeria, currently serviced by IHS, are set to expire in 2024 and 2025.
In a bid to diversify its site portfolio and cushion the business from market volatility, MTN Nigeria has been proactively renegotiating its tower contracts. The company has selected ATC Nigeria Wireless Infrastructure Solutions Limited as the preferred tower company for the affected sites after a competitive bidding process.
This shift in partnership follows a souring of relations between MTN and IHS. Last year, MTN completed a sale-and-leaseback deal with IHS for more than 5,700 of its South African tower sites. However, since then, the two companies have found themselves embroiled in a shareholder dispute over governance issues. MTN holds a 26% stake in the tower firm.
American Tower is no stranger to MTN's operations. The company previously acquired MTN’s stake in its tower operations in Uganda and Ghana.
The announcement of this change was made public through a statement signed by Uto Ukpanah, the Company Secretary of MTN Nigeria. In line with MTN Nigeria's procurement policy, the company called for tender for these tower contracts, ensuring a transparent and competitive bidding process.
ATC will assume responsibility for the provision of tower services for the affected sites from 2025. This move aligns with MTN Nigeria's initiative to renegotiate tower agreements, focusing on terms that will help insulate the business from fluctuations in its trading environment.
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