MTN in Talks to Acquire Remaining 75% of IHS Towers in $2.76bn Deal

• MTN Group is negotiating to buy the 75% stake in IHS Towers it does not already own.
• The deal would value the tower company at about $2.76 billion.
• Acquisition would give MTN greater control over tower infrastructure, potentially improving network efficiency and reducing reliance on third parties.

MTN Group, Africa’s largest mobile network operator, is in advanced negotiations to acquire the remaining 75 per cent stake in IHS Towers, a move that could value the infrastructure firm at approximately $2.76 billion.

Reuters reported on Thursday that the talks aim to consolidate MTN’s stake in IHS, which it originally acquired 25 per cent of during a landmark 2014 tower sale transaction spanning several African markets.

MTN’s Chief Executive Officer, Ralph Mupita, said in a 2024 statement that contract renewals across its markets had put operations on a more sustainable footing. He emphasised that the focus remained on investing in networks, ensuring high availability, and meeting growing data demand.

“The renewals are key to those priorities. We look forward to working constructively with IHS on outstanding governance issues now that commercial arrangements have been concluded,” Mupita said.

Strategic significance for MTN

Any potential offer would align with IHS’s latest market valuation, although discussions are ongoing and no binding agreement has been reached. If completed, the acquisition would allow MTN to exert greater control over tower assets critical to the operation and expansion of its mobile networks.

Also read: MTN and Airtel Africa Forge Network Sharing Agreement to Enhance Coverage and Reduce Costs

Greater ownership of towers could help MTN manage operational costs, improve network efficiency, and reduce dependence on third-party providers over the long term. MTN also indicated that, if the deal does not materialise, it would explore other ways to unlock value from its existing shareholding while staying within its capital allocation framework.

Both MTN and IHS have maintained a long-standing commercial relationship, with MTN serving as IHS’s largest customer across several African markets. MTN is also a significant shareholder in IHS, highlighting the strategic importance of the ongoing talks for both companies.