MTN Group to Acquire IHS Towers in $6.2B Deal
South Africa's MTN Group is acquiring full ownership of IHS Towers in a deal with an enterprise value of $6.2 billion. The transaction, valued at $2.2 billion in cash, consolidates control over nearly 29,000 telecom towers across Africa. The offer of $8.50 per share represents a 36% premium, prompting a national security review by Nigeria's Ministry of Communications to assess consumer protection and competition.
- The transaction is financed through a mix of sources: a rollover of MTN's existing ~24% stake in IHS, approximately $1.1 billion in cash from MTN, and roughly $1.1 billion from IHS Towers' own balance sheet. - This deal represents a strategic reversal for MTN, which previously sold many of these same tower assets to IHS. The acquisition aims to reintegrate critical infrastructure, internalize lease payments, and gain greater control over costs and future 5G rollouts. - Key financial advisors on the deal include BofA Securities and Citigroup for MTN Group, with J.P. Morgan advising IHS Towers. Legal counsel was provided by Cravath, Swaine & Moore for MTN and Latham & Watkins for IHS. - The transaction is contingent on IHS completing the sale of its non-African assets; the company has already announced the divestiture of its Latin American tower and fiber operations to focus the portfolio being acquired by MTN. - The deal has secured significant early backing, with long-term IHS shareholder Wendel providing a letter of support to vote in favor of the transaction. Combined with MTN's own voting stake, this represents support from over 40% of shareholders. - The acquisition follows a period of shareholder friction, including a 2023 dispute where IHS denied requests from MTN and Wendel for greater board representation. - Upon completion, which is expected in 2026, IHS Towers will be delisted from the New York Stock Exchange and become a wholly-owned subsidiary of MTN Group.
