Leading Telecommunications service provider, MTN Group, has announced a proposed acquisition of the remaining shares in IHS Towers, in a deal that will see the telecom giant increase its shareholding to 100 per cent and take the company private.
The company currently holds about 24.7 percent of IHS.MTN said the board of IHS has accepted its offer of $8.50 per share in a transaction that values the outstanding shares it does not already own at approximately $2.2 billion.The deal is subject to shareholder and regulatory approvals, as well as the delisting of IHS from the New York Stock Exchange, NYSE. Upon completion of IHS’s previously announced disposals of its Latin American assets, it is intended that MTN will acquire 100 per cent of the company’s remaining business, primarily focused on Africa.IHS is one of the world’s largest independent tower companies, with nearly 29,000 towers across Africa, serving multiple mobile network operators in five key MTN markets.MTN said funding for the acquisition will come from about $1.1 billion in cash already on IHS’s balance sheet, alongside available liquidity and debt at MTN.
The company stressed that no new equity will be issued at the Group level, although the transaction will result in a short-term increase in leverage. The deal is expected to be accretive to net income and cash flow.By reintegrating the tower assets, MTN said it will internalise margins currently paid to IHS, benefit from future third-party revenue growth and improve cost predictability, while unlocking long-term value embedded in its existing investment.MTN Group President and CEO, Ralph Mupita, described the move as pivotal.“This proposed transaction is a pivotal step in further strengthening MTN Group’s strategic and financial position for a future where digital infrastructure will become ever more essential to Africa’s growth and development,” he said.“This transaction gives us a unique opportunity to buy back our towers and strengthen our ability to be partners for progress to the nation states in which we operate.”IHS Chairman and CEO, Sam Darwish, said the transaction deepens the long-standing partnership between both firms and combines Africa’s largest mobile network operator with one of its largest digital infrastructure platforms.Under the terms of the deal, IHS shareholders will receive $8.50 per share, representing a 9.7 per cent premium to the 30-day volume-weighted average price as of February 4, 2026. Long-term shareholder Wendel has indicated support for the transaction.Launched in 1994 and listed on the JSE, MTN operates across emerging markets under its Ambition 2025 strategy, focused on leading digital solutions for Africa’s progress.
