MTN to Sell Down $2.09 Billion Stake in Towers Company IHS if New York IPO Succeeds
September 17 2021 - 11:18AM
Dow Jones News
By Adam Clark
MTN Group Ltd. intends to shed a stake currently worth around
$2.09 billion in telecommunications-infrastructure company IHS
Holding Ltd., if IHS successfully carries out its plan for one of
the largest ever African listings on a U.S. stock exchange.
South African telecoms company MTN said Friday that IHS had
filed a registration document for an initial public offering in New
York, although no financial details or timing were confirmed. IHS
had been reported last year to be aiming for a valuation of around
$8 billion overall, before abandoning the plan.
MTN currently holds a 29% stake in IHS, which operates more than
30,000 towers in Africa, Latin America and the Middle East. A
spokesman for MTN said an IPO would allow it to sell down its stake
over time.
The company's other major shareholders include listed French
investment company Wendel SE and Goldman Sachs Group Inc.
IHS listing itself would continue a trend for
telecommunications-tower companies to be spun out separately amid
growing data use and investor appetite for infrastructure assets.
Vodafone Group PLC raised $2.8 billion when it listed Vantage
Towers AG in Germany earlier this year. African company Helios
Towers PLC was valued at $1.45 billion when it listed in London in
2019.
Helios Towers' current market capitalization could provide an
indication as to IHS's eventual valuation. Helios is valued at
around $2.69 billion currently, having reported adjusted earnings
before interest, tax, depreciation and amortization of $226.6
million for 2020.
Applying a similar earnings multiple to IHS's adjusted Ebitda of
$819 million in 2020 would indicate a valuation of around $9.7
billion. As of June 30, the company had $2.6 billion of debt and
lease liabilities and $542 million of cash on its balance
sheet.
On Friday, IPO research firm Renaissance Capital said it
estimated that IHS could raise up to $1.5 billion from its
listing.
Write to Adam Clark at adam.clark@wsj.com
(END) Dow Jones Newswires
September 17, 2021 11:03 ET (15:03 GMT)
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