IHS Holding’s board backed MTN Group’s plan to buy out other shareholders and take the telecom tower operator private, setting up a vote on one of Africa’s largest digital infrastructure deals.
MTN will offer $8.50 a share in cash through its subsidiaries Mobile Telephone Networks Netherlands B.V. and Sub-Merger Co. If approved, IHS will become a wholly owned MTN subsidiary and will delist from the New York Stock Exchange. The transaction values IHS at about $6.2 billion on an enterprise-value basis, according to the companies.
The deal still needs shareholder approval at an extraordinary general meeting in London. At least two-thirds of votes cast must support the transaction. MTN already has support from its own IHS stake and from Oranje-Nassau Développement, linked to Wendel, giving the deal backing from blocs representing more than 40% of voting power.
IHS has spent years as an independent tower company serving telecom operators across Africa, the Middle East and Latin America. MTN is one of its largest customers and shareholders, and has long relied on IHS sites for network expansion in several African markets.
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The move comes as African telecom operators seek more control over network infrastructure amid rising data demand, power costs and currency pressure. For MTN, owning IHS would reduce dependence on a third-party tower provider and give it more control over infrastructure needed for 4G, 5G and fiber-linked services.
Key Takeaways
MTN’s bid shows a shift in African telecom strategy from asset-light outsourcing back toward infrastructure control. Over the past decade, operators sold or outsourced towers to free up cash and reduce balance-sheet pressure. That model helped independent tower companies grow, but it also left mobile operators exposed to lease costs, power expenses, currency movements and contract disputes. As data traffic rises, operators need more control over sites, energy systems and network rollout. IHS is central to that equation because it owns and operates towers across key African markets and has MTN as a core customer. Taking IHS private could let MTN align tower investment with its network plans and avoid public-market pressure on the infrastructure business. For IHS shareholders, the $8.50 offer provides cash liquidity after a listing that struggled to reflect the company’s strategic value. The risk is execution. MTN would take on a large infrastructure platform with debt, regulatory exposure and operating complexity across markets.