MTN Strikes Deal to Acquire IHS Towers for $6.2 Billion

MTN Group has reached a formal understanding with IHS Towers on a plan to buy out the shares it does not already own in the tower company, which has long provided key infrastructure for MTN’s mobile network across parts of Africa.

MTN, headquartered in Johannesburg, already holds about 24.7 per cent of IHS. It now plans to acquire the remaining shares of the New York-listed firm at $8.50 per share, a move that would value the transaction at an enterprise value of $6.2 billion, according to statements from the companies.

Enterprise value is a common deal metric in mergers and acquisitions. It estimates the full cost of acquiring a business by factoring in the company’s market value and net debt, not just the share price.

The transaction is not yet final. It still requires several approvals before it can close. Once completed, IHS will give up its public company status by delisting from the New York Stock Exchange.

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Why MTN is making the move

MTN says the deal is part of a larger strategy to strengthen and reintegrate ownership of critical digital infrastructure across Africa. It believes this could improve long-term value, especially as connectivity demand grows.

If the buyout is completed, MTN would gain direct oversight of nearly 29,000 towers across Africa. These towers currently support multiple mobile service providers in five MTN operating countries, expanding MTN’s control over a major layer of telecom infrastructure.

Funding for the acquisition would come from about $1.1 billion in cash already on IHS’s balance sheet, supported by MTN’s available liquidity and additional debt.

MTN expects full ownership to help it capture the margin it previously paid to IHS and benefit from current and future third-party revenues generated through tower sharing. It also believes the deal can improve cost predictability and unlock more value from its existing investment.

MTN Group CEO Ralph Mupita described the proposed acquisition as a pivotal step, positioning MTN for a future where digital infrastructure becomes even more central to Africa’s growth and development.