By Enemona Samuel Endurance
MTN Group, Africa’s largest mobile network operator, is in advanced discussions to acquire the approximately 75% stake in IHS Holding Limited that it does not already own. The potential deal would give the South African telecom giant full control of one of the world’s largest independent tower companies.
The announcement comes as MTN confirmed in a cautionary notice to investors on Thursday that it is evaluating a potential transaction to buy out minority shareholders of the New York Stock Exchange-listed IHS, following recent market speculation.
MTN’s Position
MTN said any potential offer would be “at a level near to the last trading price” of IHS shares on the NYSE as of February 4, 2025. The company stressed that no binding agreement has been reached and there is no certainty that discussions will result in a transaction.
MTN cautioned shareholders that if a deal is concluded, it could have a material impact on its share price, urging investors to exercise caution when trading its stock until further announcements are made.
Strategic Implications
MTN already owns a significant minority stake in IHS and maintains a deep operational relationship with the tower company across several African markets. Over the past decade, MTN has sold thousands of passive network sites to IHS through sale-and-leaseback arrangements, including a major South Africa deal in 2022 involving over 5,700 towers. These deals enabled MTN to unlock capital while retaining long-term access under master lease agreements.
A full acquisition would mark a strategic shift for MTN, reversing years of infrastructure outsourcing by bringing tower assets back under its direct control. Previous concerns around corporate governance at IHS provide context to MTN’s cautious tone in the latest announcement.
The group noted that if talks do not materialize into a deal, it will continue exploring other avenues to unlock value from its investment in IHS, consistent with its disciplined capital allocation strategy.
About IHS Holding Limited
Founded in 2001 by Sam Darwish with an initial focus on Nigeria, IHS Towers has grown into one of the world’s largest independent owners and operators of shared telecommunications infrastructure. Headquartered in London and listed on the NYSE after its 2021 IPO, IHS manages more than 37,000 towers across seven African markets, including Nigeria, South Africa, Cameroon, Côte d’Ivoire, and Zambia, as well as Latin American markets like Brazil and Colombia. MTN remains its largest customer.
The potential buyout reflects changing dynamics in Africa’s telecom infrastructure sector, as mobile operators evaluate the benefits of owning versus leasing critical network assets amid rising data demand and tighter economic conditions.
The Business Bureau will continue to monitor developments and provide updates on the MTN-IHS negotiations under Nigeria News Today.
