IHS Towers, the tower‑operating arm of IHS Holding Limited, has agreed to sell its 51% stake in the Brazilian fiber‑optical network operator I‑Systems to TIM S.A. The transaction values the stake at an enterprise value of $452.6 million and is expected to close later in 2026 after regulatory approvals from ANATEL and CADE.
The deal marks a decisive shift for IHS Towers, which has been concentrating on its core tower portfolio of more than 37,000 sites across Africa and Latin America. By exiting the capital‑intensive fiber business, the company can redirect capital toward tower expansion and debt reduction, reinforcing its strategy to become a disciplined cash‑flow generator. IHS Towers’ chief executive, Sam Darwish, said the sale “forms part of our strategic initiatives to focus growth on lower‑capex, higher‑return businesses.”
For TIM, acquiring full control of I‑Systems consolidates its broadband footprint in Brazil. The company already owned 49% of the joint venture and will now operate the entire 22,250 km of fiber routes that serve roughly 9.3 million homes, including 6.4 million fiber‑to‑the‑home connections. TIM’s CEO, Alberto Griselli, noted that the transaction “strengthens our presence in the broadband market, enhances customer experience, and supports future FTTH expansion while maintaining profitability and cash‑generation discipline.”
The joint venture was created in 2021 when TIM sold a majority stake to IHS Towers, a move that allowed TIM to focus on service provision while IHS Towers gained a foothold in Brazil’s fiber market. The current transaction reverses that arrangement, giving TIM full operational control. The deal will require approval from Brazil’s telecommunications regulator ANATEL and the antitrust authority CADE, both of which are expected to clear the transaction in the coming months.
TIM’s recent quarterly results, released on February 11, 2026, showed earnings per share of $0.4457 versus an analyst consensus of $0.4439—a beat of $0.0018 or 0.4%. The narrow margin was driven by disciplined cost management and a mix shift toward higher‑margin broadband services, offsetting modest increases in operating expenses. Revenue of $1.29 billion met expectations, reflecting steady demand for 5G and broadband services in Brazil. The company’s balance sheet shows total assets of R$56.9 billion and liabilities of R$33.0 billion, with shareholders’ equity slightly lower than the prior year, indicating a modest tightening of capital structure.
The transaction is expected to strengthen TIM’s competitive position in Brazil’s rapidly consolidating broadband market, where rivals such as Vivo have also moved to regain full ownership of their fiber assets. By owning the entire I‑Systems network, TIM can streamline operations, reduce inter‑company costs, and accelerate deployment of fiber‑to‑the‑home services, positioning the company to capture growing demand for high‑speed internet and 5G‑backed services.
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