MTN in Advanced Talks to Acquire IHS Towers Stake in $2.76 Billion Deal

MTN Group has revealed that it is in advanced talks to acquire the remaining stake in IHS Towers that it does not currently own, in a deal valued at approximately $2.76 billion. The announcement, made through a regulatory disclosure, confirmed ongoing discussions with IHS Holdings regarding a potential buyout of the majority shareholding. The proposed valuation closely aligns with IHS’s recent market capitalisation on the New York Stock Exchange.

While the negotiations signal a major strategic move, MTN cautioned that no binding agreement has been signed. Shareholders were advised to remain careful, as the outcome of the discussions could have a significant impact on the company’s financial position. The talks underscore MTN’s interest in strengthening its foothold in key infrastructure, but uncertainty remains until a final agreement is reached.

If completed, the acquisition would represent a shift from MTN’s decade-long “asset-light” approach, where the company sold tower infrastructure to specialist operators and leased back capacity. Regaining full or majority control of IHS Towers would give MTN direct oversight of vital telecommunications assets, enhancing network efficiency and long-term service delivery. Analysts suggest this could also reduce MTN’s leasing costs and improve its leverage for future network expansion.

IHS Towers, originally founded in Nigeria, has grown into one of the world’s largest independent tower operators, with operations spanning Africa, Latin America, and the Middle East. MTN has long been both a major shareholder and one of its largest customers, reflecting a deep commercial relationship between the two firms. Industry experts believe that increased ownership of tower assets could strengthen MTN’s competitive position and unlock additional operational value.

The potential deal has already captured investor attention globally, with movements in IHS’s stock reflecting market uncertainty. As discussions continue, further updates are expected regarding the structure of the acquisition and regulatory considerations. Meanwhile, MTN has indicated it would pursue alternative strategies if negotiations fail, ensuring it continues to maximize the value of its existing investment.

source: The Sun