₦airaland Forum

By Enemona Samuel Endurance

MTN Group, Africa’s largest mobile network operator, is in advanced discussions to acquire the approximately 75% stake in IHS Holding Limited that it does not already own. The potential deal would give the South African telecom giant full control of one of the world’s largest independent tower companies.

The announcement comes as MTN confirmed in a cautionary notice to investors on Thursday that it is evaluating a potential transaction to buy out minority shareholders of the New York Stock Exchange-listed IHS, following recent market speculation.

MTN’s Position

MTN said any potential offer would be “at a level near to the last trading price” of IHS shares on the NYSE as of February 4, 2025. The company stressed that no binding agreement has been reached and there is no certainty that discussions will result in a transaction.

MTN cautioned shareholders that if a deal is concluded, it could have a material impact on its share price, urging investors to exercise caution when trading its stock until further announcements are made.

Strategic Implications

MTN already owns a significant minority stake in IHS and maintains a deep operational relationship with the tower company across several African markets. Over the past decade, MTN has sold thousands of passive network sites to IHS through sale-and-leaseback arrangements, including a major South Africa deal in 2022 involving over 5,700 towers. These deals enabled MTN to unlock capital while retaining long-term access under master lease agreements.

A full acquisition would mark a strategic shift for MTN, reversing years of infrastructure outsourcing by bringing tower assets back under its direct control. Previous concerns around corporate governance at IHS provide context to MTN’s cautious tone in the latest announcement.

The group noted that if talks do not materialize into a deal, it will continue exploring other avenues to unlock value from its investment in IHS, consistent with its disciplined capital allocation strategy.

About IHS Holding Limited

Founded in 2001 by Sam Darwish with an initial focus on Nigeria, IHS Towers has grown into one of the world’s largest independent owners and operators of shared telecommunications infrastructure. Headquartered in London and listed on the NYSE after its 2021 IPO, IHS manages more than 37,000 towers across seven African markets, including Nigeria, South Africa, Cameroon, Côte d’Ivoire, and Zambia, as well as Latin American markets like Brazil and Colombia. MTN remains its largest customer.

The potential buyout reflects changing dynamics in Africa’s telecom infrastructure sector, as mobile operators evaluate the benefits of owning versus leasing critical network assets amid rising data demand and tighter economic conditions.

The Business Bureau will continue to monitor developments and provide updates on the MTN-IHS negotiations under Nigeria News Today.

Source: The Business Bureau

This is where the antitrust laws should be evoked to stop monopoly in the telecoms industry. Do we even have that?

Imagine MTN controlling the biggest shared communication masts company! This gives it an edge over other telcos in Nigeria and makes them dependent on MTN.

It shouldn't be allowed, or better still, strictly regulated.

Arkmanbuddy:
This is where the antitrust laws should be evoked to stop monopoly in the telecoms industry. Do we even have that?

Imagine MTN controlling the biggest shared communication masts company! This gives it an edge over other telcos in Nigeria and makes them dependent on MTN.

It shouldn't be allowed, or better still, strictly regulated.

The truth is, not many people are interested in the business, simply because some power play happened.

They hid the information about IHS willing to sell its shares from the public. Don't forget that some big Nigerians own shares in MTN.

I see your point, but having MTN own a major mast company isn’t automatically bad.

It can actually improve efficiency, expand coverage faster, and reduce costs if managed well. The key is proper regulation to ensure fair access for all telcos, rather than banning ownership outright.

The searchlight is now on NCC to ensure that there's no ripping of Nigerians and abuse of privilege.

Arkmanbuddy:
This is where the antitrust laws should be evoked to stop monopoly in the telecoms industry. Do we even have that?

Imagine MTN controlling the biggest shared communication masts company! This gives it an edge over other telcos in Nigeria and makes them dependent on MTN.

It shouldn't be allowed, or better still, strictly regulated.

They are already dependent except globacom.