IHS weighs bid for Telkom’s African tower business

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New York-listed IHS Holding is weighing a bid for South Africa’s Telkom’s tower unit. Moneyweb Business

New York-listed IHS Holding is weighing a bid for South Africa’s Telkom’s tower unit, according to people familiar with the matter. Deliberations are focused on the structure of the potential deal, although Telkom remains open to offers from other companies and there is no guarantee IHS will buy the unit, according to the people, who asked not to be identified because the discussions are private. IHS and Telkom declined to comment on the matter. Telkom shares rose as much as 6.

Meanwhile, mobile companies have increasingly sought to spin off their towers to focus on their core business, with Vodafone Group Plc’s African unit Vodacom separating its towers portfolio into a new unit in 2021. IHS Towers is the biggest Africa-focused tower company and has been acquiring assets in South Africa as the country prepares for a scaled roll-out of a fifth generation mobile network. The firm reached a sales-and-lease back tower deal with MTN Group in 2021.

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