In a move that fundamentally reshapes the African telecommunications landscape, MTN Group has agreed to acquire the remaining shares of IHS Towers that it does not already own. The deal, valued at approximately $2.2 billion (R35.3 billion), will see Africa’s largest mobile operator seize full control of nearly 29,000 towers across the continent. This transaction effectively reverses a decade-long trend of “asset-light” strategies where MTN sold off its passive infrastructure to third-party operators.
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The IHS board has accepted an offer of $8.50 per share, a 9.7% premium over the recent 30-day average price. MTN currently holds a 24.7% stake in the New York-listed company and plans to take it private, delisting it from the NYSE. The acquisition will be funded through a combination of $1.1 billion in cash currently on IHS’s balance sheet, alongside MTN’s existing liquidity and debt, avoiding any new equity issuance at the MTN Group level.
This acquisition represents a striking strategic shift. For years, MTN pursued an aggressive outsourcing strategy, selling thousands of sites to IHS in “sale-and-leaseback” arrangements to free up capital. This included the 2022 sale of 5,700 South African towers for R6.4 billion.
By reintegrating these assets, MTN aims to internalize the profit margins it currently pays to IHS as a tenant. Ownership allows for better cost predictability and provides a new revenue stream as MTN will now collect rent from other third-party mobile operators using those same towers. MTN Group CEO Ralph Mupita described the move as a “pivotal step” in securing the digital infrastructure essential for Africa’s future growth.
The pricing of the deal highlights the volatile journey of IHS Towers since its public debut. IHS listed on the NYSE in late 2021 at $21 per share—more than double the price MTN is now paying to buy it back. This “discount” allows MTN to reclaim its infrastructure at a significantly lower valuation than its peak.
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The transaction already has significant momentum. Wendel, a long-term IHS shareholder, has committed to voting in favour of the deal. Combined with MTN’s existing stake, this accounts for roughly 40% of the two-thirds approval required. The deal is also contingent on IHS completing the disposal of its Latin American assets, which was announced earlier this month, ensuring MTN acquires a focused African business.
MTN expects the transaction to be “accretive,” meaning it will positively contribute to the group’s net income and cash flow once finalized. Despite the large capital outlay, the company maintains that it remains committed to disciplined capital allocation and its existing dividend policies. For the broader market, the deal signals a move away from outsourcing and toward “infrastructure sovereignty,” as mobile operators seek more direct control over the hardware that powers their 5G and data networks.
