MTN to Acquire IHS Towers in $6.2bn Deal
By Momodu Favour
MTN Group Ltd. has agreed to acquire IHS Holding Ltd. in an all-cash transaction valued at $6.2bn in a landmark move set to reshape Africa’s telecommunications infrastructure landscape.
IHS Towers announced the agreement on Tuesday, revealing that shareholders will receive $8.50 per share, representing a 239 per cent premium over the company’s share price at the start of its strategic review in March 2024.
The deal follows a strategic review initiated on March 12, 2024, during a period marked by sustained geopolitical and macroeconomic volatility across several of IHS’ key operating markets.
The transaction offers shareholders what the company described as immediate and certain value after months of evaluating options to unlock long-term growth potential.
IHS Towers’ Board of Directors has unanimously approved the agreement and recommended that shareholders vote in favour of the transaction.
MTN has committed to vote all of its existing IHS shares in support of the deal, while long-term shareholder Wendel has also issued a letter backing the transaction.
Together, the two shareholders account for more than 40 per cent support, significantly strengthening the prospects of shareholder approval.
Upon completion, IHS Towers will cease to be publicly listed and will become a wholly owned subsidiary of MTN.
Chairman and CEO of IHS Towers, Sam Darwish, described the deal as a compelling opportunity that enables shareholders to crystallise value generated during the review process.
He noted that the transaction deepens IHS’ long-standing partnership with MTN and reinforces the company’s strong ties to Africa.
Darwish highlighted IHS Towers’ growth over the past 25 years from a single tower in one market to operations spanning 11 countries with approximately 40,000 towers at its peak.
Group President and CEO of MTN, Ralph Mupita, characterised the acquisition as a pivotal strategic move aimed at strengthening the group’s financial and operational position in a future where digital infrastructure will be central to Africa’s economic development.
According to Mupita, bringing tower assets back under MTN’s ownership enhances the company’s ability to partner effectively with governments and expand connectivity across its markets.
He said the transaction gives MTN a unique opportunity to buy back its towers and strengthen its role as a partner for progress to the nation-states in which it operates, adding that the company remains committed to maintaining high service standards and strong governance practices for customers and partners across the continent.
The transaction is expected to close in 2026, subject to shareholder and regulatory approvals.
It will be funded through the rollover of MTN’s existing approximately 24 per cent fully diluted stake in IHS Towers, together with approximately $1.1bn in cash from MTN and approximately $1.1bn in cash from IHS Towers’ balance sheet, as well as the rollover of no more than existing IHS debt.
As part of the closing conditions, IHS Towers will be required to maintain a minimum cash balance of $355m at completion. The ability to meet some of these requirements depends on the successful completion of the previously announced sales of its Latin American tower operations and fibre assets in February 2026.
Industry analysts say the acquisition signals a broader strategic shift within Africa’s telecom sector, where operators are reassessing earlier infrastructure divestments.
By reintegrating tower assets, MTN appears to be positioning itself for tighter operational control, improved cost efficiencies and long-term digital expansion amid rising data demand across the continent.
If approved, the deal will create the largest standalone and integrated tower company in Africa under MTN’s ownership, further consolidating its position as the continent’s leading telecommunications group.
