MTN is buying back the towers it sold for R6.4 billion
MTN Group has announced that the board of IHS Towers has accepted an offer of $8.50 (R137) a share in a transaction that would see MTN increasing its shareholding in the company to 100%.
“The potential transaction is subject to various approvals and the delisting of IHS from the New York Stock Exchange,” MTN said.
MTN South Africa sold 5,701 of its towers to IHS in 2022 for a cash consideration of R6.4 billion. This excluded lease liabilities estimated to be R4.6 billion.
Upon the completion of IHS’s announced disposals of its Latin American assets on 11 February and 17 February 2026, 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,” it said.
“The proposed transaction marks an important step to unlock compelling value for MTN and strengthen and reintegrate its ownership of critical digital infrastructure across Africa.”
MTN said that for IHS shareholders, the proposed acquisition offers an attractive opportunity to crystallise value.
It said the funding for the proposed transaction of the remaining shares MTN does not already own, for a consideration of some $2.2 billion (R35.4 billion), will be through a combination of cash and debt.
MTN will use approximately $1.1 billion (R17.7 billion) of cash on IHS’s balance sheet, along with available liquidity and debt, to finance the purchase.
“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, pursuant to a cash merger.”
By reintegrating the tower assets, MTN said it will be able to internalise the margin currently paid to IHS.
It will also benefit from current and future incremental third-party revenues, improve cost predictability and unlock significant long-term value embedded in its existing 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,” said MTN Group President and CEO Ralph Mupita.
“This transaction gives us a unique opportunity to buy back our towers and strengthen our ability to be partners for progress to the nation-states in which we operate.”
Mupita said that MTN commits to maintaining high service standards and sound governance for IHS customers and partners across the continent.
MTN said that the $8.50 per share offer translates to a 9.7% premium to the 30-day volume-weighted average price as at 4 February 2026.
Long-term IHS shareholder Wendel has provided a letter of support to vote in favour of the transaction and will receive full liquidity on its shares upon closing.
With support from Wendel and certain affiliates, and MTN able to vote at a general meeting, roughly 40% of the minimum two-thirds approval of voting shareholders has already been secured.
MTN noted that the proposed transaction is subject to IHS shareholder approval, regulatory approvals in the relevant markets and customary closing conditions.
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