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The operator says reintegrating the tower assets will strengthen its African operations and improve financial metrics
African telco giant MTN Group is set to take full control of IHS Towers, one of Africa’s largest independent tower companies, in a deal valued at $6.2 billion.
The deal will see MTN acquire the 75% stake in IHS that it doesn’t already own for $2.2 billion in cash.
“This proposed transaction is a pivotal step in further strengthening MTN Group’s strategic and financial position for a future where digital infrastructure will become ever more essential to Africa’s growth and development. This transaction gives us a unique opportunity to buy back our towers and strengthen our ability to be partners for progress to the nation states in which we operate,” said MTN CEO Ralph Mupita.
The deal is subject to the typical regulatory approvals, with watchdogs likely to look closely at the impact on competition, given IHS also rents their infrastructure to MTN’s rivals across Africa.
For MTN, the move represents something of a strategic U-turn. The operator group has pursued an asset-light approach for the past decade, selling many of its towers – largely to IHS – in multiple markets.
In recent years, however, MTN’s relationship with the tower company has grown more complicated. The operator has repeatedly complained about IHS’s corporate governance, particularly that IHS had capped its voting rights at 20%, despite MTN owning a stake of around 26% in the business.
At the same time, IHS saw major losses from the devaluation of the Nigerian naira in 2023, leading MTN to attempt to seek adjusted lease terms to reduce foreign‑currency exposure.
Given this increasingly difficult operating relationship, MTN’s stake acquisition represents an opportunity to simplify and de-risk the company’s balance sheet by removing long‑term lease liabilities.
Market watchers will be watching whether MTN’s reintegration of roughly 29,000 African sites delivers the financial and strategic gains management forecasts, and whether rivals respond with selective buybacks, new sharing deals, or continued reliance on independent towercos.
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