- IHS Towers expanded rapidly by acquiring towers originally built and operated by MTN Nigeria
- MTN Group President and CEO, Ralph Mupita, said the buyback would enhance MTN’s strategic and financial position
- Under the terms of the deal, IHS shareholders will receive $8.50 per ordinary share in cash
In a significant move for the African telecom sector, MTN Group has announced it will reacquire its former telecom towers from IHS Towers, the world’s largest independent operator and developer of shared communications infrastructure, in a deal valued at approximately $6.2 billion.
Eko Hot Blog gathered that the agreement, finalized yesterday after weeks of negotiations, was unanimously approved by the Board of IHS Towers and recommended to its shareholders.
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Founded in Nigeria in 2001, IHS Towers expanded rapidly by acquiring towers originally built and operated by MTN Nigeria and other telecom companies, eventually becoming one of the largest tower operators globally.
Sam Darwish, Chairman and CEO of IHS Towers, described the transaction as an opportunity to crystallize the company’s value built over 25 years.
“This acquisition provides certainty and immediate returns for shareholders, while strengthening our long-standing partnership with MTN,” he said.
“It combines Africa’s largest mobile network with one of the continent’s leading digital infrastructure platforms and highlights our deep ties to Africa.”
MTN Group President and CEO, Ralph Mupita, said the buyback would enhance MTN’s strategic and financial position as digital infrastructure grows increasingly critical for economic development.
“Reacquiring these towers allows us to strengthen our partnership with the countries where we operate and support continued progress,” he said.
“We are committed to maintaining high service standards and proper governance of Africa’s largest integrated tower network, powered by the talented teams at IHS.”
Under the terms of the deal, IHS shareholders will receive $8.50 per ordinary share in cash, representing a 36 percent premium over the company’s 52-week average trading price and a three percent premium to its February 4 closing price of $8.23.
MTN, which holds roughly 24 percent of IHS, has pledged to vote its shares in favor of the transaction, while long-term investor Wendel has also committed support, ensuring over 40 percent of shareholder backing.
The deal will be financed through a combination of MTN’s existing 24 percent stake in IHS, $1.1 billion in cash from MTN, approximately $1.1 billion from IHS’ balance sheet, and the rollover of some existing IHS debt.
Returning to direct ownership of thousands of towers, MTN reverses a decade-long trend of outsourced tower leasing, a move expected to reduce long-term rental costs and give the company more flexibility for future 5G and fiber network expansion.
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