What is the story about?
What's Happening?
IHS Towers, a global independent tower company, has finalized the sale of its Rwanda unit, including approximately 1,467 sites, to Paradigm Tower Ventures. This transaction, initially announced in May 2025, involves Paradigm acquiring 100% of shares in IHS Rwanda Limited through the Paradigm Infrastructure Holdings vehicle. The consortium includes Convergence Partners Digital Infrastructure Fund, British International Investment, and Société de Promotion et de Participation pour la Coopération Economique S.A. The sale is valued at $274.5 million, with a transaction multiple of 8.3x adjusted EBITDA after leases, representing a significant premium compared to the current valuation multiple of the IHS Towers group. JPMorgan served as the financial advisor for IHS Towers in this transaction.
Why It's Important?
The completion of this sale marks a strategic shift for IHS Towers, focusing on shareholder value-creation options. For Paradigm Tower Ventures, this acquisition represents its first investment aimed at expanding new-build shared wireless infrastructure in sub-Saharan Africa. This move could significantly enhance wireless connectivity and infrastructure development in the region, potentially attracting further investments and fostering economic growth. The involvement of major financial entities like British International Investment and PROPARCO underscores the importance of this transaction in the broader context of infrastructure development in emerging markets.
What's Next?
Paradigm Tower Ventures is expected to focus on developing shared wireless infrastructure in selected emerging and growth markets, leveraging this acquisition to expand its footprint in sub-Saharan Africa. This could lead to increased competition and innovation in the wireless infrastructure sector, potentially driving down costs and improving service quality for consumers. Stakeholders in the telecommunications industry may closely monitor the impact of this transaction on market dynamics and infrastructure development in the region.
Beyond the Headlines
The sale of IHS Towers' Rwanda unit to Paradigm Tower Ventures highlights the growing interest in infrastructure development in Africa, particularly in the telecommunications sector. This transaction could set a precedent for future investments in the region, emphasizing the role of international partnerships in fostering economic development. Additionally, the focus on shared wireless infrastructure aligns with global trends towards more sustainable and efficient resource utilization.
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