Sam Darwish Sells IHS Brazil Fibre Stake

IHS Towers chairman and chief executive Sam Darwish has moved to exit the Brazilian fibre market, signing a deal to sell the company 51 percent stake in I Systems to TIM in a transaction valued at 452.6 million dollars.

The sale marks a strategic shift for the Nigerian based tower operator as it narrows its focus to lower capital intensive businesses with stronger returns. TIM, which already owns 49 percent of I Systems, will take full control of the fibre network provider once the deal closes.

Darwish said the transaction forms part of a broader plan to strengthen shareholder value and streamline the company portfolio. He noted that the decision aligns with previously announced initiatives aimed at concentrating growth in higher return segments of the telecom infrastructure market.

I Systems operates shared optical fibre networks across Brazil and covers about 9.3 million homes passed, including 6.4 million fibre to the home connections. By the end of December 2024, the network extended roughly 22,250 kilometres.

Under the terms disclosed by IHS Towers, the deal reflects an enterprise value of 452.6 million dollars. The transaction remains subject to customary regulatory approvals and other closing conditions and is expected to be finalised later this year.

Darwish expressed appreciation to employees and partners who supported the build out of the fibre business in Brazil, describing the development of I Systems as an important chapter in the company international expansion.

The move comes as IHS navigates a period of strategic realignment and renewed investor attention. Almost a week ago, MTN Group confirmed it is in discussions to acquire the 75 percent stake in IHS that it does not already own.

MTN currently holds about one quarter of IHS equity and is also its largest customer. A full takeover would mark a significant shift in the long standing relationship between the two telecom giants, whose partnership has combined operational alignment with periodic governance tensions.

Based on IHS current market valuation of about 2.76 billion dollars, the acquisition of the remaining shares would imply a transaction worth roughly 2.07 billion dollars.

In 2023 and 2024, investors put pressure on IHS because of worries about how the company was run and how well its stock price was doing. After going public on the New York Stock Exchange in October 2021, the company’s stock lost over half its value by mid-2023, which upset stockholders.

MTN wanted more say in how IHS was run, so it suggested linking its equity stake to voting rights that were limited to below its ownership level. The proposal did not proceed to a vote at the company annual meeting.

In recent months, IHS share price has rebounded sharply, gaining more than 100 percent over the past year. Market analysts say the Brazil exit and potential MTN transaction signal a decisive period under Darwish leadership as the company recalibrates its long term strategy.