Simmons & Simmons has advised long-standing client MTN Group Limited (“MTN”) on the sale of mobile network towers by its subsidiaries, MTN Côte d’Ivoire (“MTN CI”) and MTN Cameroon (“MTN CMR”). MTN has agreed to sell up to 931 towers in Côte d’Ivoire for US$141m and up to 827 towers in Cameroon for US$143m to IHS Holding Limited (“IHS”).
MTN is a leading telecommunications provider operating in 21 countries in Africa and the Middle East. As at 30 June 2012, MTN had over 175 million subscribers across its operations.
Under the transactions, IHS will be the 100% shareholder of the tower companies set up in each country to manage the towers and other passive infrastructure being sold by MTN CI and MTN CMR. On the closing of the transactions, MTN CI and MTN CMR will, on commercial terms, become the anchor tenants on the towers being purchased for an initial term of ten years.
The Simmons & Simmons team was led by Paris corporate partnerChristian Taylor, assisted by Sophie Coignat (corporate) and Christine Carbonnel (real estate).
Commenting on the transactions, Christian Taylor said: ‘‘Our Africa experience spans over 20 years and we have acted on matters involving at least 43 of the 54 African nations. MTN is one of Africa’s great “success stories” and we have been a regular adviser to them since 2005. We are delighted to act for it again on these passive infrastructure sharing transactions in two countries, Côte d’Ivoire and Cameroon, that we know very well.”
“I think that Africa will see many more transactions of this type in the years to come, as they allow telecoms operators toreduce their capital expenditure requirements whilst focusing on their customer base,” he added.
The transactions are expected to close during the first quarter of 2013, subject to customary closing conditions.
IHS Holding Limited was advised by Linklaters.
