MTN To Acquire 75 Per Cent IHS Towers

MTN Group is negotiating to regain full control of its tower infrastructure, entering advanced talks as it vies to acquire a 75 per cent stake in IHS Towers.

This move signals a fundamental shift from MTN years of asset outsourcing back to direct infrastructure control, potentially reshaping Africa’s telecom landscape.

The potential buyout, confirmed in an investor announcement, comes amid longstanding corporate governance concerns MTN has held regarding IHS.

Industry analysts said, this represents a monumental pivot, after a decade of selling towers to free capital, this is not merely a financial transaction, but a strategic correction aimed at securing MTN’s core network future.

While the financial offer is pitched near the NYSE trading price, a level marked by recent sector optimism, the undertone of MTN’s announcement reveals deeper motivations.

The telecom firm has previously voiced unease with IHS’s corporate governance framework, which is now critical to the buyout motive. Hence, acquiring full ownership would allow MTN to directly oversee management and operations, eliminating a persistent source of strategic friction.

Meanwhile, if the deal is concluded, it would effectively reveal much of MTN’s past capital strategy. Over the years, the operator sold thousands of towers across Africa to IHS, including a landmark 5,700-tower sale-and-leaseback in South Africa in 2022.

These deals generated cash but locked MTN into long-term lease agreements, creating a perpetual operational cost.

With MTN bringing IHS fully in-house, this structure would collapse, transforming lease payments into internal capital deployment and granting MTN financial leverage over its network expansion, technology upgrades, and energy management, a crucial advantage in an era of soaring power costs and rapid data growth.

While the firm has clearly stated that no binding agreement exists, as the deal may not proceed. However, if the deal fails to materialise, the company affirmed it would pursue other avenues to unlock value from its substantial IHS stake, keeping all options open under its disciplined capital allocation framework.

However, analysts allude that a successful acquisition would mark one of the continent’s most significant infrastructure consolidations, granting Africa’s telecom leader direct command of a global tower giant.

Consequently, the move is a high-stakes gamble to trade financial agility for absolute strategic control, network expansion and delivery of quality service to its subscribers.