MTN strikes deal to acquire IHS Towers for $6.2 billion

MTN Group has reached a formal understanding with IHS Towers, the long-standing provider of its tower infrastructure, regarding its proposal to acquire all the shares held by others in the company, apart from itself.

The Johannesburg-based, Africa’s largest wireless operator, already holds about 24.7 per cent of the target firm’s shares.

It now looks to purchase the remainder of the New York-listed company at an offer price of $8.5 per share, according to a statement released on Tuesday. The enterprise value of the deal is set at $6.2 billion, IHS Tower stated in a separate statement issued in New York and London, where it is headquartered.

Widely used in M&As, enterprise value measures the cost of acquiring a company by comparing its net debt to its market value.

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The transaction requires various approvals to reach closure, and IHS will lose its quoted company status by delisting from the New York Stock Exchange upon completion of the process.

“The proposed transaction, which follows discussions noted on 5 February 2026, marks an important step to unlock compelling value for MTN and strengthen and reintegrate its ownership of critical digital infrastructure across Africa,” MTN Group said.

It added that shareholders of IHS are in for a good chance to lock in value from the deal

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The buyout gives MTN the latitude to directly oversee almost 29,000 towers on the continent, which currently serve a number of mobile service providers in five of the countries where it operates.

Funding for the share purchase “will be through cash of approximately US$1.1 billion on IHS’s balance sheet, along with available liquidity and debt from MTN,” the acquirer said.

MTN is upbeat that the acquisition of the tower infrastructure will enable it to absorb the margin it used to pay to IHS and to enjoy present and subsequent incremental third-party revenues. Similarly, it expects the asset purchase to enhance cost predictability and free up substantial long-term value inherent in its current investment.

“This proposed transaction is a pivotal step in further strengthening MTN Group’s strategic and financial position for a future where digital infrastructure will become ever more essential to Africa’s growth and development,” CEO Ralph Mupita said.