MTN Group, Africa’s largest mobile operator, is in advanced discussions to acquire the 75 percent stake it does not currently own in IHS Holdings, a tower infrastructure firm, in a transaction that could value the company at around US$2.76 billion, the telecom operator said on Thursday.
MTN, which leases IHS Towers’ infrastructure across Nigeria, South Africa, and several other African markets, said any potential offer would be pitched at IHS Holdings’ last closing price on the New York Stock Exchange. The dual-listed company also trades in Frankfurt.
Shares in U.S.-listed IHS Holdings fell 5 percent to US$8.23 on Wednesday, implying a market value of roughly US$2.76 billion, according to Reuters calculations.
The acquisition, if completed, would give MTN full ownership and greater control over its tower infrastructure, enhancing operational efficiency and long-term strategic planning for network deployment across key African markets. Tower ownership is increasingly seen as a way for mobile operators to optimize costs, streamline network expansion, and generate recurring revenue through leasing.
“MTN has a longstanding commercial relationship with IHS Towers, serving as its largest customer across multiple African countries while holding a major equity stake,” the company said. “No final agreement has been reached, and discussions are ongoing.”
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Should the talks not result in a deal, MTN said it would explore alternative options to unlock value from its stake, while maintaining its existing capital allocation framework. Analysts note that this flexibility could include partial sales, strategic partnerships, or continued leasing arrangements to preserve cash flow and shareholder value.
Strategic Importance of Tower Assets
The potential acquisition comes amid a broader industry trend in Africa, where telecom operators increasingly seek greater control over critical infrastructure to support data growth and mobile broadband expansion. Tower assets are key enablers of 4G and 5G networks and can provide stable, long-term revenue streams through lease arrangements with third-party operators.
For MTN, which operates in over 20 African markets and serves more than 120 million mobile subscribers, owning IHS Towers outright could help reduce network leasing costs and increase operational flexibility, particularly in high-growth regions like West and Southern Africa.
Following news of the talks, IHS Holdings’ shares have been volatile, reflecting investor uncertainty over the terms and timing of a potential deal. Analysts said the acquisition, if successful, could have implications for capital allocation across MTN’s portfolio, affecting other investment initiatives such as spectrum acquisitions, network upgrades, and digital services expansion.
“This is a strategic move by MTN to consolidate its infrastructure footprint in Africa,” said Nnaji Okonkwo, a telecom analyst in Lagos. “Owning the towers directly reduces reliance on third parties and could improve margins, but the company will need to manage debt and liquidity carefully if it proceeds.”
Next Steps
MTN emphasized that discussions are still in the negotiation phase and that there is no certainty that a transaction will be completed. The company said it would provide updates in accordance with regulatory requirements and market disclosure rules once agreements are finalized.
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IHS Holdings, which operates more than 100,000 towers across Africa and other emerging markets, has been a pivotal partner for MTN’s network operations. The company has previously explored public and private investment strategies to fund expansion and optimize its asset base, including listing on international exchanges and attracting global institutional investors.
The outcome of the MTN-IHS negotiations is likely to draw close attention from investors, regulators, and industry stakeholders across Africa’s telecommunications sector, as it could signal further consolidation trends in tower ownership and infrastructure investment across the continent.
