MTN Group, Africa’s largest mobile network operator, is in advanced negotiations to acquire the remaining 75% stake in IHS Holding Limited that it does not already own. If successful, the deal would give MTN full control of one of the world’s largest independent tower companies.
In a statement to investors on Thursday. MTN confirmed it is exploring a potential offer to buy out minority shareholders of IHS. Which is listed on the New York Stock Exchange (NYSE). This comes after IHS recently faced increased scrutiny in the markets.
Key Details from MTN
MTN stated that any potential offer would likely align with IHS’s last trading price on the NYSE before February 4, 2025.
IHS’s stock has seen significant growth in recent months, reflecting renewed investor interest in the telecom infrastructure sector. However, MTN emphasized that no binding agreement has been reached. And also there is no guarantee the negotiations will result in a transaction.
The company also cautioned shareholders to trade carefully, as any finalized deal could have a material impact on MTN’s share price. Further updates will be provided as negotiations progress.
Strategic Context
MTN already holds a significant minority stake in IHS. And has a long-standing operational partnership 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 agreements. This includes a major deal in South Africa in 2022 involving over 5,700 towers.
These agreements allowed MTN to unlock capital tied up in infrastructure. While maintaining long-term access to the towers through master lease contracts. However, acquiring full ownership of IHS would mark a strategic shift, reversing years of outsourcing tower assets and bringing them back under MTN’s direct control.
MTN has previously raised concerns about corporate governance within IHS, which adds a cautious tone to its latest announcement.
Alternative Plans
Should the negotiations fail, MTN stated it would explore other strategies to maximize the value of its investment in IHS. This approach aligns with the company’s disciplined capital allocation policy.
