JOHANNESBURG, South Africa – MTN Group has reached an agreement to acquire the remaining shares of IHS Towers it does not already own in a deal valued at approximately $6.2 billion, including debt. The transaction, announced , marks a significant strategic move for MTN, solidifying its control over critical digital infrastructure across Africa and potentially unlocking substantial value for its shareholders.
Under the terms of the agreement, MTN will pay $8.50 per share for the outstanding IHS Towers stock, representing a 9.7% premium over the 30-day volume-weighted average share price as of . MTN currently holds approximately 24.7% of IHS Towers. The deal requires shareholder and regulatory approvals and will result in IHS being delisted from the New York Stock Exchange (NYSE).
The acquisition will be financed through a combination of approximately $1.1 billion in cash already held by IHS, alongside MTN’s existing liquidity and debt facilities. MTN stated that no new equity issuance will be required at the group level. The total consideration for the remaining shares is approximately $2.2 billion.
Strategic Rationale and Benefits for MTN
MTN’s decision to fully acquire IHS Towers stems from a desire to internalize the margins currently paid to the tower company, improve cost predictability, and capitalize on potential third-party revenue streams. By bringing the tower assets in-house, MTN aims to enhance its strategic and financial position in a rapidly evolving digital landscape.
“This proposed transaction is a pivotal step in further strengthening MTN Group’s strategic and financial position for a future where digital infrastructure will become ever more essential to Africa’s growth and development,” said MTN Group President and CEO Ralph Mupita. “This transaction gives us a unique opportunity to buy back our towers and strengthen our ability to be partners for progress to the nation states in which we operate.”
IHS Towers operates nearly 29,000 towers across Africa, serving a diverse range of mobile network operators in five key MTN markets. The reintegration of these assets will provide MTN with greater control over its infrastructure and allow it to optimize network performance and expand its service offerings.
Impact on IHS Shareholders
The deal offers IHS shareholders an opportunity to realize the value of their investment. The $8.50 per share offer provides a clear exit strategy and a premium on the recent trading price. Long-term IHS shareholder Wendel has already provided a letter of support for the transaction and has secured liquidity for its shares upon closing.
MTN has already secured commitments representing approximately 40% of the minimum two-thirds approval needed from IHS shareholders. This support from Wendel and MTN’s own voting rights significantly increases the likelihood of the deal’s successful completion.
IHS Perspective and Future Outlook
IHS Chairman and CEO Sam Darwish emphasized the deepening partnership between MTN and IHS. “The proposed transaction deepens our long-standing partnership with MTN as it combines Africa’s largest mobile network operator with one of its largest digital infrastructure platforms and underscores the strong connection between IHS Towers and the African continent,” he stated.
The transaction is expected to be accretive to MTN’s net income and cash flow. MTN anticipates that the internalization of tower assets will lead to improved financial performance and greater operational efficiency.
Recent IHS Disposals
The acquisition is contingent upon the completion of IHS’s previously announced disposals of its Latin American assets, which occurred on and . These divestitures are part of IHS’s strategy to focus on its core African markets and streamline its operations.
Regulatory Hurdles and Closing Timeline
The proposed transaction remains subject to regulatory approvals in the relevant African markets. MTN expects the deal to close in 2026, pending these approvals and the satisfaction of customary closing conditions. The company has not provided a specific timeline for the completion of the regulatory review process.
This acquisition represents a bold move by MTN to consolidate its position as a leading telecommunications provider in Africa. By taking full ownership of IHS Towers, MTN is positioning itself to capitalize on the growing demand for digital services and infrastructure across the continent.
