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MTN Eyes Full Acquisition of IHS Towers in $2.76bn Deal

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

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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.

Also read: UNILAG Presents ₦35 Million MTN Campus Invasion Car to Student Winner

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.

Also read: MTN Group Announces Mobile Money Partnership With Flutterwave

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

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Theparkpay Technologies Limited Strengthens Global Payments Infrastructure with UK FCA Licence

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Theparkpay UK FCA licence strengthens the fintech’s global payments infrastructure as it expands regulated cross-border services across key markets (more…)

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Wale Tinubu Says Nigeria’s Creativity Can Drive Exports

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Wale Tinubu says Nigeria’s creativity can become a major export industry, creating jobs, attracting foreign exchange and building sustainable businesses (more…)

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TotalEnergies, AMNI Approve $800m Ima Gas Project

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TotalEnergies and Nigerian independent energy company AMNI International have taken the Final Investment Decision on the $800 million Ima Gas Project, more than five decades after the gas field was discovered.

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The Ima Gas Project, located in shallow waters across Oil Mining Leases 112 and 117 near Bonny Island, Rivers State, is expected to begin production in 2028 and reach a plateau of 350 million cubic feet of gas per day.

The development is expected to play a major role in supplying feed gas to Nigeria LNG, with the Ima field projected to provide about one-third of the additional gas required for the ongoing Train 7 expansion.

Train 7 is expected to increase Nigeria LNG’s liquefaction capacity from 22 million tonnes per annum to 30 million tonnes per annum, strengthening Nigeria’s capacity to process and export liquefied natural gas.

The Ima field was discovered in 1973 but remained undeveloped for more than 50 years. The Final Investment Decision provides the commercial and financial basis for finally developing the long-dormant resource.

Under the development plan, TotalEnergies will operate the project with a 40 per cent interest, while AMNI will hold the remaining 60 per cent.

The field will be developed using a single offshore platform connected to Nigeria LNG’s facility on Bonny Island through a 22-kilometre pipeline.

TotalEnergies said its investment in the project is more than $600 million, while the Federal Government described the overall Final Investment Decision as an $800 million investment.

At the FID signing ceremony in Abuja, TotalEnergies Exploration and Production Nigeria Managing Director, Mathieu Bouyer, described the decision as the culmination of a development process that had stretched across several decades.

He said the project reflected increased confidence in Nigeria’s investment environment and highlighted reforms targeting the non-associated gas sector as part of the factors that helped make the development commercially viable.

President Bola Tinubu welcomed the investment, saying the project demonstrated the potential of reforms introduced to reduce the cost and time required to develop oil and gas projects.

The President said the government had introduced incentives aimed specifically at unlocking onshore and shallow-water gas projects that had remained undeveloped for years.

He said the Ima development would create opportunities for Nigerian businesses, engineers, technicians and contractors, while generating jobs, economic activity in host communities and additional export earnings.

The project is also expected to have a strong Nigerian content component. TotalEnergies said all key contractors for the development would be Nigerian companies, while about 60 per cent of the workforce during the development phase is expected to come from host communities.

The development will incorporate measures aimed at reducing emissions. TotalEnergies said the platform would receive electricity from shore, operate without routine flaring and use permanent methane detection and monitoring systems.

The Federal Government said the project is part of efforts to turn Nigeria’s large natural gas reserves into productive assets capable of supporting industrialisation, energy supply, jobs and export earnings.

Special Adviser to the President on Energy, Olu Verheijen, said the Ima development illustrated the importance of creating commercial and investment conditions that allow previously stranded resources to be developed.

The government also noted that Nigerian financial institutions arranged 77 per cent of the project’s financing, further highlighting the participation of domestic financial institutions in the development.

For Nigeria LNG, the project comes as the company continues work on the Train 7 expansion, which is designed to increase the Bonny Island plant’s liquefaction capacity and strengthen the country’s position in the global LNG market.

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