MTN Seals $6.2bn Deal to Take Over IHS Towers
Africa’s telecom landscape took a dramatic turn as MTN Group Ltd, the continent’s largest mobile network operator, reached an agreement to acquire IHS Towers one of the world’s biggest independent telecommunications tower companies in a blockbuster all-cash deal valued at about $6.2 billion.
The agreement, confirmed by multiple leading Nigeria news outlets and global business press, marks one of the most significant infrastructure deals in recent African corporate history, reshaping ownership of telecom backbone assets across the region.
Under the terms of the merger deal, IHS Towers shareholders will receive $8.50 per ordinary share in cash, a compelling premium reflecting confidence in immediate shareholder value.
That price translates to roughly a 239 % premium over IHS’s share price when it launched its strategic review in March 2024, about 36 % above its 52 weeks volume-weighted average, and approximately 3 % higher than its unaffected closing price just before the deal announcement. Board members of IHS have unanimously endorsed the offer and urged investors to back the transaction.
For MTN, this acquisition isn’t just about owning more towers it represents a strategic pivot after years of divesting tower infrastructure to independent operators to unlock capital and focus on service growth. MTN once held a minor stake of roughly 24 % in IHS and was a major tenant leasing tower space.
The new deal will see the telecom giant transition from a tenant and minority investor to the sole owner of IHS Towers, signalling a bold reversal of past asset-light strategies.
The transaction’s financing structure blends several elements: a rollover of MTN’s existing stake in IHS, about $1.1 billion in cash from MTN’s coffers, another $1.1 billion from IHS’s balance sheet, and the rolling over of existing IHS debt while still maintaining a required minimum cash balance at closing. Completion is expected in 2026, subject to customary regulatory and shareholder approvals, and linked conditions such as the successful sale of IHS’s Latin American tower operations and fibre business.
Industry observers see the move as more than a financial transaction. For MTN’s leadership, led by Group President and CEO Ralph Mupita, the acquisition deepens a longstanding partnership between the mobile operator and IHS, while positioning the company to better support long-term digital infrastructure growth across its African service footprint.
Owning its tower network outright is anticipated to bolster MTN’s negotiating power with governments and operators alike, reduce rental expenses, and give the company greater control over future technology rollouts including 5G and fibre expansions.
IHS Towers, founded in Nigeria and listed on the New York Stock Exchange in 2021, grew to manage tens of thousands of towers across multiple continents. With MTN’s move to take it private, IHS will be delisted from the NYSE and become a wholly owned MTN subsidiary, ending its run as a standalone public company. The chairman and CEO of IHS, Sam Darwish, described the agreement as an opportunity for shareholders to crystallize the value that has been created since its strategic review launched, while reinforcing the deep commercial ties between the two organisations.
The deal’s announcement sent ripples through Africa’s telecom and investment community, underscoring a broader trend in which operators reassess the value of infrastructure ownership amid rapid data demand growth and strategic imperatives for digital sovereignty. As regulatory reviews progress and closing conditions are met, the full realization of this acquisition is poised to reshape how connectivity infrastructure is owned, operated, and monetized across the continent.
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