In a landmark deal set to reshape Africa’s telecommunications landscape, MTN Group has agreed to acquire IHS Towers, the continent’s largest independent operator of shared communication infrastructure, at an enterprise value of $6.2 billion. The agreement restores MTN’s direct ownership of thousands of telecom towers it originally built and later sold, reversing a decade-long industry trend towards outsourced tower leasing.
The transaction, finalised after weeks of negotiations, received unanimous approval from IHS Towers’ Board of Directors, who recommended the deal to shareholders. Founded in Nigeria in 2001, IHS Towers expanded rapidly by acquiring telecom infrastructure from MTN Nigeria and other operators, eventually becoming one of the world’s largest tower operators.
Brandspur Banking News Desk reports that MTN already held roughly 24% of IHS on a fully diluted basis. Under the merger terms, IHS shareholders will receive $8.50 per share in cash, representing a 36% premium to the 52-week volume-weighted average price and a 3% premium to the unaffected February 4 closing price. Long-term investor Wendel and MTN have pledged support, collectively covering over 40% of shareholder backing.
MTN Group CEO, Ralph Mupita, emphasised that the acquisition strengthens the company’s strategic and financial position while enabling greater flexibility for future 5G and fibre network rollouts. “The transaction gives us a unique opportunity to buy back our towers and reinforce our role as partners for progress across the nations we serve,” Mupita said.
IHS Towers’ Chairman and CEO, Sam Darwish, described the deal as a significant milestone, creating immediate value for shareholders while cementing the long-standing partnership with MTN. The acquisition is expected to reduce MTN’s long-term tower rental costs and enhance operational efficiency across its African markets.
Funding for the deal will come from MTN’s existing 24% stake in IHS, $1.1 billion in MTN cash, $1.1 billion from IHS’ balance sheet, and the rollover of existing IHS debt. The transaction marks a decisive move in Africa’s digital infrastructure sector, positioning MTN to capitalise on the continent’s growing demand for advanced telecommunications services.
