Afrigather 
A brewing standoff between shareholders of the telecommunications big IHS spilled into the open at this week’s annual assembly of the corporate, degenerating right into a tense confrontation after IHS dismissed calls for from MTN and one other of its largest stakeholders.
IHS is the most important telecommunications infrastructure supplier in Africa, Latin America and the Center East by tower depend and the fourth largest impartial multinational tower firm globally.
With its Nigerian head workplace in Lagos, IHS Towers and its subsidiaries handle over 16,700 websites in Africa’s largest cell communications market.
Wendel SE and MTN Group Ltd., which collectively personal about 45% of the corporate, argued at Wednesday’s annual assembly that every one shareholders with a minimum of a ten% stake ought to have the facility to appoint board members however IHS’s board dismissed the proposals, in response to a report by Bloomberg.
“The proposals requested to be put ahead weren’t in the very best pursuits of the corporate as an entire or our collective shareholder base,” IHS stated in an announcement responding to Bloomberg’s questions.
IHS board decided that the proposal was “designed to profit sure giant shareholders to the detriment of different shareholders.”
Wendel and MTN haven’t commented formally on the standoff.
Some buyers are on the lookout for a change after IHS’s inventory plummeted, dropping 60% of its market worth since its preliminary public providing in New York in 2021.
Tower firms in Africa are struggling to deal with giant calls for for funding of their networks to deal with surging broadband and smartphone use.
The 2 shareholders additionally stated IHS administration failed to present discover of their proposed resolutions in a well timed trend and are demanding the overall assembly be reconvened to think about them.
MTN reportedly sought to transform its non-voting shares into voting ones, and that movement was denied, the individuals stated.
At the moment, MTN, which is Africa’s greatest cell operator, owns a 26% financial stake and controls 20% of the voting rights.
MTN doesn’t have board illustration at the moment, and Wendel has one consultant, Frank Dangeard.
Learn additionally: MTN likely to keep IHS Towers investment for now, says group CEO
“Below our shareholders settlement, Wendel has the best to designate one director for nomination by the board every so often as long as Wendel holds a minimum of 10% of the shares,” stated IHS. “MTN doesn’t have the same proper, which was agreed as a part of the IPO to protect IHS Towers’ independence from a big buyer,” the corporate stated.
Earlier than going public, IHS administration clashed with Wendel over post-IPO voting rights in a dispute that delayed the share sale, Bloomberg reported on the time.
