03 Jan MTN assigns shareholder loan to IHS to accelerate Nigerian network investment
South Africa’s MTN Group has announced that it has assigned its shareholder loan of around USD231 million to tower company IHS Holding, and the pair have agreed to improved and volume-based commercial terms for MTNNigeria’s future network expansion plans. MTN Group says the move will allow its Nigerian unit to continue to invest in its network more efficiently, including the rollout of broadband and data services. The firm adds that the assignment of the loan, which was due in 2024/2025, to IHS will lead to a loss of ZAR2.8 billion (USD226 million) on transfer of the carrying value of the loan. This will impact earnings per share (EPS) and headline earnings per share (HEPS) for 2017, but will not affect EBITDA.