IHS Holding IHS recently completed the sale of its tower operations in Kuwait to Zain Group for an enterprise value of $230 million. With a portfolio of over 39,000 towers spanning nine markets, including Brazil, Cameroon, Colombia, Cote d'Ivoire, Egypt, Nigeria, Rwanda, South Africa and Zambia, the company continues to enhance its shareholder value through this strategic transaction. 

Zain is a leading telecommunications operator serving 47.2 million active customers across the Middle East and Africa region. As part of the deal, Zain now holds a 70% stake in IHS Kuwait Limited, which includes approximately 1,675 sites and an additional 700 managed sites. Known for its advanced services, the company is now well-equipped to integrate these new towers into its network and continue delivering excellent service.

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 transaction 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 Towers have plunged 27.5% over the past year against the industry’s growth of 10.1%.

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IHS’ Zacks Rank and Key Picks

IHS Towers currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the broader industry have been discussed below.

Ubiquiti Inc. UI sports a Zacks Rank #1 (Strong Buy) 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.

InterDigital, Inc. IDCC sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%.

IDCC pioneered advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops various advanced technology solutions for digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Arista Networks, Inc. ANET, carrying a Zacks Rank #2 (Buy), is likely to benefit from strong momentum and diversification across its top verticals and product lines. It is well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.

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