MTN inches towards takeover of infrastructure company

Africa’s largest mobile network operator, MTN Group, is inching towards total takeover of IHS, as it entered advanced discussions to acquire the roughly 75% stake in the infrastructure company. The South African mobile telecom operator has already acquired almost 25 per cent of IHS Holding Limited and has now entered into advanced discussion on total […]

Africa’s largest mobile network operator, MTN Group, is inching towards total takeover of IHS, as it entered advanced discussions to acquire the roughly 75% stake in the infrastructure company.

The South African mobile telecom operator has already acquired almost 25 per cent of IHS Holding Limited and has now entered into advanced discussion on total ownership.

Experts said the move would give the South African telecom giant full control of one of the world’s largest independent tower companies.

MTN on Thursday confirmed it is evaluating a potential transaction to buy out minority shareholders of the New York Stock Exchange-listed IHS, following recent market speculation around the company.

IHS stock has rallied sharply in recent months, reflecting renewed investor interest in the telecom infrastructure sector.

The company stressed that no binding agreement has been reached and there is no certainty that the discussions will result in a transaction.

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

MTN already owns a significant minority stake in IHS and has 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 deal in South Africa in 2022 that involved more than 5,700 towers.

These transactions enabled MTN to unlock capital tied up in infrastructure while retaining long term access to towers under master lease agreements.