MTN Group, Africa’s largest mobile network operator, is in advanced talks to acquire the remaining 75 per cent stake in IHS Towers, a deal that could value the tower infrastructure firm at about $2.76bn.
Reuters reported on Thursday that the telco was negotiating to purchase the 75 per cent stake in IHS Holdings that it does not currently own.
“Based on the company’s latest closing price on the New York Stock Exchange, the potential transaction values IHS at approximately $2.76bn”, the publication said.
MTN’s roughly 25 per cent holding in IHS Towers stems from its 2014 tower sale deal, when the operator sold most of its tower assets across several African markets to IHS as part of a landmark infrastructure transaction.
“The renewal of the various contracts across our markets into the next decade put MTN operations in the respective markets onto a more sustainable footing.
“We remain focused on ensuring our networks are well invested, have high availability, and have the headroom to meet the growing and structural demand for data going into the future.
“These renewals are key to those priorities. We look forward to working constructively with IHS on the outstanding governance issues now that commercial arrangements have been concluded”, MTN Group President and Chief Executive Officer Ralph Mupita had said in a 2024 statement.
The telco, which relies heavily on IHS for tower infrastructure across key markets, including Nigeria, said any offer would be aligned with IHS’s most recent market valuation. It added that discussions remain ongoing and that no binding agreement has been reached.
IHS Holdings, which is listed in both New York and Frankfurt, saw its US-listed shares close lower on Wednesday, giving the group a market capitalisation of about $2.76bn, according to market data.
If completed, the acquisition would mark a strategic shift for MTN, allowing it to exert greater control over assets that are central to the operation and expansion of its mobile networks.
Greater ownership of tower infrastructure could also help MTN manage costs, improve network efficiency, and reduce its reliance on third-party providers over the long term.
MTN said that if the negotiations do not result in a deal, it would consider other ways to unlock value from its existing shareholding in IHS while staying within its capital allocation framework.
Both companies, which are present in Nigeria, have maintained a long-standing commercial relationship, with MTN serving as IHS’s largest customer across several African markets.
MTN is also one of IHS Towers’ significant shareholders, underlining the strategic importance of the talks for both parties.
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