MTN Group has agreed to acquire the shares in IHS Towers that it does not already own, in a deal that would see Africa’s largest mobile operator take full control of nearly 29 000 towers across the continent – effectively reversing years of selling off its passive infrastructure.
The IHS board has accepted an offer of US$8.50/share, representing a 9.7% premium to the 30-day volume-weighted average price before MTN’s cautionary announcement on 5 February. The deal values the remaining shares at about $2.2-billion (R35.3-billion).
MTN, which holds approximately 24.7% of IHS, intends to take the New York-listed company private through a cash merger and delist it from the NYSE. The acquisition will be funded through about $1.1-billion in cash sitting on IHS’s balance sheet, with the remainder coming from MTN’s available liquidity and debt. No new equity will be issued at the MTN Group level.
The proposed transaction, which requires IHS shareholder approval and regulatory sign-off, follows discussions first disclosed on 5 February. Long-term IHS shareholder Wendel has already committed to vote in favour, giving MTN about 40% of the minimum two-thirds approval needed.
The deal marks a striking strategic U-turn for MTN. Over the past decade, the group pursued an aggressive tower outsourcing strategy, selling thousands of passive sites to IHS under sale-and-leaseback arrangements. In 2022, MTN sold 5 700 South African towers to IHS in a R6.4-billion transaction. IHS then listed on the NYSE in October 2021 at $21/share – more than double the price MTN is now offering to take it private.
MTN said reintegrating the tower assets will allow it to internalise margins currently paid to IHS, benefit from third-party revenues and improve cost predictability.
‘Pivotal’
“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 CEO Ralph Mupita.
IHS chairman and CEO Sam Darwish said the deal “combines Africa’s largest mobile network operator with one of its largest digital infrastructure platforms”.
Read: MTN completes R6.4-billion South Africa towers sale
IHS is in the process of disposing of its Latin American assets, announced on 11 and 17 February. MTN will acquire 100% of the remaining business once those sales are completed.
Read: MTN Group in talks to buy out IHS Towers
The transaction is forecast to be accretive to MTN’s net income and cash flow, and the company said it remained committed to disciplined capital allocation, including shareholder remuneration. — (c) 2026 NewsCentral Media
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