MTN negotiates to acquire remaining 75% of IHS Towers, valuing the company at $2.76bn to strengthen network infrastructure across Africa

MTN Group, Africa’s largest mobile network operator, is in advanced discussions 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.

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Reuters reported on Thursday that the negotiations concern MTN’s purchase of the 75 per cent share in IHS Holdings that it does not currently own.

MTN’s existing 25 per cent holding stems from a 2014 tower sale agreement, in which the operator sold most of its tower assets across Africa to IHS as part of a landmark infrastructure deal.

“The renewal of the various contracts across our markets into the next decade puts MTN operations on a more sustainable footing,” MTN Group President and Chief Executive Officer Ralph Mupita said in a 2024 statement.

“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.”

Any potential offer for the remaining stake would be aligned with IHS Towers’ latest market valuation, although MTN stressed that discussions remain ongoing and no binding agreement has been reached.

IHS Holdings, listed on the New York and Frankfurt stock exchanges, closed lower on Wednesday, giving the company a market capitalisation of about $2.76 billion.

If completed, the acquisition would represent a strategic shift for MTN, granting the operator greater control over assets essential to the expansion and efficiency of its mobile networks.

Greater ownership of tower infrastructure could reduce MTN’s reliance on third-party providers, lower costs, and enhance network performance.

The company indicated that if negotiations do not yield a deal, it would explore alternative ways to unlock value from its existing shareholding while staying within its capital allocation framework.

MTN and IHS Towers have maintained a longstanding commercial relationship, with MTN serving as IHS’s largest customer across several African markets.

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The discussions underscore the strategic importance of tower infrastructure to MTN’s long-term operational plans.