MTN Group's R35 billion offer accepted by IHS Towers board

MTN Group said Wednesday the board of New York-listed IHS Towers had accepted a R35 billion offer, or $8.50 a share, in a deal that will see MTN increasing its shareholding to 100%.

The funding for the proposed transaction of the remaining shares MTN does not already own, for a consideration of some $2.2bn (R35.3bn at current exchange rates), will be through cash of about $1.1bn on IHS’s balance sheet, along with available liquidity and debt from MTN.

MTN has approximately 24.7% shareholding in IHS. As part of the transaction, it intends to take the company private through the acquisition of all outstanding shares it does not own, as part of a cash merger.

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

The potential transaction is subject to various approvals and the delisting of IHS from the New York Stock Exchange (NYSE).

Upon the completion of IHS’s announced disposals of its Latin American assets, it is intended that MTN will acquire 100% of IHS’s remaining business.

IHS is one of the world’s largest tower companies, with nearly 29 000 high-quality towers in Africa serving various mobile network operators in five key MTN markets.

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

For IHS shareholders, it provides them with a good opportunity to crystalise value.

By reintegrating the tower assets, MTN said it will be able to internalise the margin currently paid to IHS, benefit from current and future incremental third-party revenues, improve cost predictability, and unlock significant long-term value embedded in its existing investment.

“For IHS customers and partners, we commit to continuing high standards of service and the right governance of what is the largest standalone and integrated tower company in Africa, enabled by the excellent people within IHS,” said Mupita.

Through this transaction, IHS shareholders will receive $8.50 per share. This translates to a 9.7% premium to the 30-day volume-weighted average price as at February 4, 2026, being the last day of trading before the release of MTN’s cautionary announcement about a possible deal.

Long-term IHS shareholder Wendel had provided a letter of support to vote in favour of the transaction. With support from Wendel and MTN being able to vote at a general meeting, a 40% shareholding had already been secured towards the minimum two-thirds approval of voting shareholders.

No new equity issuance would be required at MTN, and the funding plan allowed for a short-term increase in leverage. The transaction was expected to be accretive to income and cash flow.

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