MTN Moves to Reclaim Tower Assets with Potential IHS Buyout Deal
MTN Group, Africa’s largest telecommunications operator, is reportedly in advanced negotiations to acquire the remaining stake in IHS Holdings that it does not already control. The proposed transaction would see MTN purchase approximately 75 percent of the tower company’s shares, valuing IHS at an estimated $2.76 billion.
The development, disclosed on Thursday, has drawn strong attention from investors and industry observers, as it could significantly reshape how MTN manages and owns its network infrastructure across multiple markets.
A Strategic Play for Infrastructure Control
MTN currently relies heavily on IHS for access to telecom towers in major markets, including Nigeria and South Africa. These towers form the backbone of its mobile and data services, supporting millions of customers daily.
According to the company, any formal bid would likely be aligned with IHS’s most recent closing price on the New York Stock Exchange. However, MTN has emphasized that discussions are still ongoing and that no binding agreement has been reached.
If finalized, the acquisition would give MTN direct ownership of infrastructure it currently rents, strengthening its control over network deployment, maintenance, and long-term planning.
A Long-Standing Commercial Relationship
The potential deal builds on years of close collaboration between both companies. MTN is one of IHS’s largest clients and has also been a significant shareholder in the business.
In 2024, both firms renewed long-term tower lease agreements across several African countries, reinforcing their deep operational ties. These arrangements highlighted the extent to which MTN’s network expansion strategy has been intertwined with IHS’s infrastructure footprint.
This history makes a full acquisition a natural, though ambitious, next step in their relationship.
Reversing the Sale-and-Leaseback Model
For much of the past decade, telecom operators across Africa and other emerging markets have adopted a sale-and-leaseback strategy. Under this model, companies sold their physical tower assets to independent operators and leased them back to free up capital and reduce maintenance costs.
IHS Towers, founded in Nigeria in 2001, has since expanded into one of the world’s largest independent tower companies, managing tens of thousands of sites across Africa, Latin America, and the Middle East.
A full takeover by MTN would represent a shift away from this asset-light model and signal renewed interest in owning critical infrastructure.
Financial Implications and Investor Caution
Despite the strategic appeal, MTN has been careful to manage market expectations. The company has advised investors that discussions remain preliminary and that the transaction, if completed, could have a significant impact on its share price.
MTN also stated that it will continue exploring other ways to unlock value from its existing IHS stake should negotiations fail. This suggests the group is keeping alternative financial and strategic options open.
For shareholders, the potential acquisition presents both opportunity and risk, given the scale of the investment and its long-term implications.
What This Could Mean for Africa’s Telecom Sector
If MTN succeeds in acquiring IHS, it would mark one of the most significant infrastructure consolidations in Africa’s telecom industry in recent years.
Greater ownership of tower assets could enable MTN to:
Reduce long-term leasing costs
Improve network rollout speed
Enhance service reliability
Gain stronger bargaining power in future partnerships
At the same time, it could alter competitive dynamics for other operators that rely on independent tower providers.
Read More: MTN Digital Skills Programme Empowers Youth-Led SMEs, Reaches Over 6,000 Microbusinesse
A Defining Moment for MTN’s Infrastructure Strategy
MTN’s talks with IHS signal a possible turning point in how Africa’s largest telecom company approaches network ownership. Moving from a leasing-heavy model to direct control would reshape its cost structure and operational strategy for years to come.
While negotiations remain ongoing, the outcome could redefine the balance between telecom operators and tower companies across the continent. For now, the industry is watching closely to see whether MTN can secure full control of one of Africa’s most critical digital infrastructure assets.
