MTN Group is in advanced talks to acquire the remaining 75 per cent stake in IHS Towers, a move that could value the tower infrastructure company at approximately $2.76 billion.
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 originates 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, stated that any offer would be aligned with IHS’s most recent market valuation.
Discussions remain ongoing, and no binding agreement has been reached.
IHS Holdings, listed in both New York and Frankfurt, saw its US-listed shares close lower on Wednesday, resulting in a market capitalisation of about $2.76 billion according to market data.
If completed, the acquisition would represent a strategic shift for MTN, enabling greater control over assets critical to the operation and expansion of its mobile networks.
Greater ownership of tower infrastructure could also assist MTN in managing costs, enhancing network efficiency, and reducing long-term dependence on third-party providers.
MTN indicated that if the negotiations do not lead to a deal, it would explore other options to unlock value from its existing shareholding in IHS while adhering to its capital allocation framework.
Both companies, with significant presence in Nigeria, share a long-standing commercial relationship, with MTN as IHS’s largest customer across several African markets.
MTN is also one of IHS Towers’ significant shareholders, highlighting the strategic importance of the ongoing talks for both parties.
