MTN Group has agreed to acquire the 75% stake it does not already own in IHS Holding in a $2.2bn (R35bn) all-cash transaction, valuing the Nigerian-headquartered tower operator at $6.2bn.
The deal will result in IHS delisting from the New York Stock Exchange and becoming a wholly owned subsidiary within MTN’s digital infrastructure platform, subject to regulatory approvals.
The transaction marks a strategic shift for Africa’s largest mobile operator, which has historically separated its tower assets to unlock capital and reduce balance-sheet pressure. IHS is the continent’s largest independent tower company, with operations across Nigeria, South Africa, Cameroon, Côte d’Ivoire and Zambia. MTN operates in all these markets, while IHS generates roughly 70% of its revenue from MTN, underscoring the commercial interdependence between the two groups.
Tower companies across emerging markets have faced valuation pressure since 2022 amid higher global interest rates, currency volatility and slower infrastructure roll-outs. IHS, which listed in New York in 2021 at an equity valuation exceeding $7bn, saw its market capitalisation decline sharply by mid-2023. MTN had previously indicated that a potential sell-down of its minority stake could support debt reduction, but weaker equity markets altered that calculus.
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The acquisition is intended to strengthen MTN’s control over passive infrastructure critical to network performance, particularly as operators invest in 4G densification and expand 5G coverage. Industry data from the GSM Association shows that mobile broadband penetration in Sub-Saharan Africa remains below 40%, suggesting continued demand for tower expansion as data usage rises and fixed wireless access gains traction.
MTN has indicated that full ownership will enhance service revenue and expand core earnings margins through operational efficiencies and ownership economics. By internalising tower cash flows, the group also expects improvements in free cash flow and net income over time. At a market capitalisation of about R356bn on the JSE, MTN is seeking to reinforce its long-term infrastructure strategy while maintaining independent governance structures for IHS, which will continue operating on an open-access basis for third-party customers.
The move signals a new phase in a partnership that has at times been strained, including renegotiations of dollar-denominated lease terms in Nigeria. Analysts note that tighter integration may reduce currency exposure and improve capital allocation discipline as African telecom operators navigate rising infrastructure needs and constrained funding environments.
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