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Africa’s largest mobile operator, MTN Group, has agreed to acquire the remaining shares in IHS Towers that it does not already own, in a transaction valued at about $2.2 billion.
The deal will give MTN full control of nearly 29,000 telecom towers across the continent, effectively reversing years of divesting passive infrastructure through sale-and-leaseback arrangements.
The IHS board has accepted an offer of $8.50 per share, representing a 9.7% premium to the company’s 30-day volume-weighted average share price prior to MTN’s cautionary announcement on February 5.
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MTN currently holds about 24.7% of IHS and plans to take the New York-listed company private through a cash merger, after which it will be delisted from the New York Stock Exchange.
The acquisition will be funded using roughly $1.1 billion in cash already on IHS’s balance sheet, with the remaining amount coming from MTN’s liquidity and debt facilities. The group confirmed that no new equity will be issued at the MTN level.
The transaction still requires shareholder approval and regulatory clearance. Long-term IHS investor Wendel has already committed to vote in favour, providing MTN with about 40% of the two-thirds approval threshold required to complete the deal.
The acquisition marks a significant strategic shift for MTN, which over the past decade outsourced thousands of tower sites to IHS.
In 2022, MTN sold about 5,700 South African towers for roughly $340 million. Earlier, in October 2021, IHS listed on the New York Stock Exchange at $21 per share, more than double MTN’s current offer to take the company private.
MTN says bringing tower assets back under direct ownership will allow it to internalise margins currently paid to IHS, generate additional revenue from third-party tenants and improve long-term cost predictability.
MTN Group CEO Ralph Mupita described the proposed acquisition as a major strategic move.
He said the transaction would strengthen the group’s financial and operational position as digital infrastructure becomes increasingly central to economic growth across Africa.
IHS chairman and CEO Sam Darwish said the deal brings together Africa’s largest mobile network operator and one of its most significant digital infrastructure platforms, positioning both businesses for long-term expansion.
IHS is currently in the process of selling its Latin American assets, following announcements made earlier in February. MTN will acquire full ownership of the remaining business once those disposals are completed.
The telecom operator expects the transaction to boost both net income and cash flow while maintaining its commitment to disciplined capital allocation and shareholder returns.
The move reflects growing recognition of telecom infrastructure as a strategic asset in Africa’s digital future. By reintegrating tower ownership, MTN is positioning itself to capture more value from network expansion while strengthening control over one of the continent’s most critical connectivity platforms.
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