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IHS to Sell 70% Stake in Kuwait to Reduce Debt: Stock to Gain?
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IHS Holding (IHS - Free Report) recently announced that it has entered into a definitive agreement to sell its tower operations in Kuwait to Zain Group for an enterprise value of $230 million. The sale includes approximately 1,675 sites, along with an additional 700 managed sites in the country.
Founded in 1983, Zain Group is a leading telecommunications operator serving 47.2 million active customers across the Middle East and Africa region. Known for its advanced services, the company is well-equipped to integrate these new towers into its network and continue delivering excellent service.
The acquisition, subject to customary closing conditions and regulatory approvals, is expected to close in the first half of 2025. Upon closing, Zain Group is expected to acquire a 70% stake in IHS Kuwait Limited.
Does IHS Stock Stand to Gain From the Sale?
From an industry perspective, the deal represents a significant consolidation within the telecom industry, where companies are reshaping their portfolios and strategies to adapt to changing market conditions and technological advancements. The agreement is part of IHS Holdings’ ongoing strategy to explore opportunities that drive shareholder value. The proceeds from the transaction will primarily be used to reduce the company's debt, contributing to a healthier financial position and improved balance sheet in the upcoming quarters.
IHS’ Stock Price Performance
Shares of IHS have plunged 29% over the past year against with the industry’s growth of 14.8%.
Image Source: Zacks Investment Research
IHS’ Zacks Rank and Key Picks
IHS currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry have been discussed below.
The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers.
InterDigital, Inc. (IDCC - Free Report) sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%
IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities.
Ubiquiti Inc. (UI - Free Report) sports a Zacks Rank #1 at present. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.
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IHS to Sell 70% Stake in Kuwait to Reduce Debt: Stock to Gain?
IHS Holding (IHS - Free Report) recently announced that it has entered into a definitive agreement to sell its tower operations in Kuwait to Zain Group for an enterprise value of $230 million. The sale includes approximately 1,675 sites, along with an additional 700 managed sites in the country.
Founded in 1983, Zain Group is a leading telecommunications operator serving 47.2 million active customers across the Middle East and Africa region. Known for its advanced services, the company is well-equipped to integrate these new towers into its network and continue delivering excellent service.
The acquisition, subject to customary closing conditions and regulatory approvals, is expected to close in the first half of 2025. Upon closing, Zain Group is expected to acquire a 70% stake in IHS Kuwait Limited.
Does IHS Stock Stand to Gain From the Sale?
From an industry perspective, the deal represents a significant consolidation within the telecom industry, where companies are reshaping their portfolios and strategies to adapt to changing market conditions and technological advancements. The agreement is part of IHS Holdings’ ongoing strategy to explore opportunities that drive shareholder value. The proceeds from the transaction will primarily be used to reduce the company's debt, contributing to a healthier financial position and improved balance sheet in the upcoming quarters.
IHS’ Stock Price Performance
Shares of IHS have plunged 29% over the past year against with the industry’s growth of 14.8%.
Image Source: Zacks Investment Research
IHS’ Zacks Rank and Key Picks
IHS currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry have been discussed below.
Celestica Inc. (CLS - Free Report) sports a Zacks Rank #1(Strong Buy) at present. In the last reported quarter, Ubiquiti delivered an earnings surprise of 10.64%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers.
InterDigital, Inc. (IDCC - Free Report) sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%
IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities.
Ubiquiti Inc. (UI - Free Report) sports a Zacks Rank #1 at present. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.