IHS Holding, a prominent player in the telecommunications tower industry, is reportedly exploring the possibility of divesting its operations in Rwanda and Zambia. The company is gauging interest from potential acquirers, with the intention of allocating a portion of the proceeds from any sales to reduce its outstanding debt.
This strategic consideration follows a period of financial strain for IHS, which recently downsized its workforce by 100 employees in the wake of incurring a substantial loss of $1.9 billion in 2023. This figure represents a staggering increase of 304% from the loss reported in the preceding year.
Operating a network of over 40,000 towers spanning Africa, Latin America, and the Middle East, IHS is still in the preliminary phase of the sale process. Consequently, there remains a possibility that the company may retain these assets for an extended period, depending on how the discussions evolve.
The financial woes of IHS have been exacerbated by the significant devaluation of the Nigerian naira, the currency of its largest market. Since the inauguration of President Bola Tinubu in May 2023, the naira has depreciated by over 70% in value relative to the US dollar.
Despite the economic headwinds and a steep decline in its share price—over 80% since its initial public offering in 2021—IHS maintains a positive outlook on the fundamental robustness of its business model.
IHS Holding has recently disclosed that it requires a substantial capital infusion, estimating the need to secure between $500 million and $1 billion in funding to maintain its operations. To navigate this critical juncture, the company is collaborating with financial advisors, including the esteemed JPMorgan Chase & Co., to determine the most viable strategy for its financial sustainability.
