MTN Group, Africa’s largest mobile network operator, has entered advanced discussions to buy the approximately 75 percent of shares in IHS Holding Limited (IHS Towers) that it does not already own, a move that would give the South African telecom giant full control of one of the world’s leading independent tower infrastructure companies.

In a cautionary announcement to investors on Thursday, MTN confirmed it is considering a transaction to acquire the remaining stake in the New York Stock Exchange-listed IHS, following recent market speculation.

The potential offer price would be “at a level near to the last trading price” of IHS shares on the NYSE as of February 4, 2025, a period when the stock has seen a sharp rise in recent months, reflecting renewed investor confidence in the sector.

No binding agreement has been reached, and MTN emphasised there is no certainty the deal will proceed. If completed, however, the transaction could materially impact MTN’s share price, prompting the company to advise shareholders to exercise caution in trading until further updates.

MTN already holds a significant stake in IHS and maintains a deep operational partnership across multiple African markets.

Over the past decade, MTN has sold thousands of passive network sites to IHS through sale-and-leaseback deals, including a major transaction in South Africa in 2022 involving over 5,700 towers.

These arrangements allowed MTN to free up capital from infrastructure while securing long-term tower access via master lease agreements.

A full buyout would represent a dramatic strategic pivot for MTN, effectively bringing tower infrastructure back in-house after years of outsourcing to specialised operators like IHS.

MTN has previously voiced concerns about corporate governance at IHS, adding context to its cautious approach in the announcement.

If the deal falls through, MTN said it would continue exploring options to unlock value from its IHS investment, consistent with its disciplined capital allocation strategy.

Background on IHS Towers

Founded in 2001 by Sam Darwish and initially focused on building communication towers in Nigeria, IHS Towers (IHS Holding Limited) has grown into one of the world’s largest independent owners, operators, and developers of shared telecommunications infrastructure.

Headquartered in London and listed on the NYSE since its 2021 IPO, the company manages over 37,000 towers across seven markets in Africa (including Nigeria, South Africa, Cameroon, Côte d’Ivoire, and Zambia) and Latin America (such as Brazil and Colombia). It serves as a critical backbone for mobile connectivity in emerging markets, with MTN as its largest customer.

IHS is the leading independent tower operator in several of its key markets, providing colocation services and supporting the expansion of mobile networks in regions with growing demand for digital connectivity.

The potential acquisition underscores the evolving dynamics in Africa’s telecom infrastructure sector, where operators weigh the benefits of owning versus leasing critical assets amid rising data demands and economic pressures.

Further announcements are expected as discussions progress. (Business Day)