MTN accused IHS Towers of breaching their shareholder agreement by blocking MTN’s proposal to increase its voting rights in line with its 26% shareholding.
- IHS Towers bought R6.4 billion worth of towers from MTN in 2022.
- However, MTN’s voting rights are currently capped at 20%, which is the crux of the dispute.
- MTN submitted a governance proposal to align its economic and voting rights before IHS’s 2023 AGM.
- Under the shareholder agreement, IHS was required to include MTN’s proposal on the AGM agenda and allow shareholders to vote on it.
- However, MTN believes IHS wilfully breached the agreement by failing to notify shareholders of the proposal and denying them the vote.
- MTN has requested IHS call an extraordinary general meeting to consider its proposal and other governance issues. MTN says it is evaluating its options to enforce the agreement.