IHS Towers has announced a deal to sell its 70 percent stake in IHS Kuwait Limited to Zain Group, with the telco taking back ownership of towers it previously sold.

According to IHS, a company that focuses on telecom infrastructure in Africa, Latin America, and the Middle East, the terms of the transaction reflect an enterprise value of $230 million for the IHS Kuwait portfolio.

The deal includes approximately 1,675 sites, plus an additional 700 sites managed in Kuwait by Zain Group.

Zain Group is one of the biggest telcos in the Middle East and Africa, serving more than 47 million customers across eight countries.

Proceeds from the sale will be used to ease debt.

“Today’s announcement forms part of our wider ambition to drive shareholder value and enhance our balance sheet," said Sam Darwish, chairman & CEO, IHS Towers.

"The transfer of IHS Kuwait to Zain, the largest mobile network operator in Kuwait, not only highlights the significant value contained within our portfolio but will also allow us to further reduce our net leverage.”

IHS Kuwait has been operational since 2020 after it initially completed the sale and leaseback of up to 1,620 towers in Kuwait from Zain.

“This agreement will enhance Zain’s Digital Infrastructure regional expansion strategy in creating capital efficiencies and driving shareholder value,” said Bader Al Kharafi, vice-chairman and group CEO at Zain.

The transaction is subject to customary closing conditions, including government and regulatory approvals, and is expected to close in the first half of 2025.

Prior to the completion of the sale, IHS Towers had more than 40,000 towers across its 10 markets, including Brazil, Cameroon, Colombia, Côte d’Ivoire, Egypt, Kuwait, Nigeria, Rwanda, South Africa and Zambia.

In August, the company reached an agreement to renew and extend all Nigeria tower master lease agreements until December 2032.