MTN seeks local buyers for 30% IHS Nigeria stake

MTN Group is looking to bring Nigerian investors into the ownership structure of IHS Nigeria Plc, with plans to sell a 30 percent interest in the telecommunications infrastructure company.

The proposed divestment is understood to be part of an arrangement reached with Nigerian competition authorities and could generate between $900 million and $1.1 billion, Bloomberg reported on Thursday, citing people familiar with the matter.

MTN Group Chief Executive Officer, Ralph Mupita, said proceeds from the proposed stake sale would be channelled towards reducing debt associated with its investment in IHS.

Mupita said the transaction would be priced based on market conditions but declined to disclose further financial details.

The planned sell-down follows MTN’s commitment to transfer part of its interest in IHS Nigeria to Nigerian investors as part of its regulatory obligations.

The move comes after MTN earlier announced plans to take full control of IHS Nigeria by acquiring the roughly 75 percent stake it did not already own.

Following the proposed acquisition and the completion of IHS’s planned disposals of its tower and fibre businesses in Latin America, MTN said it would become the sole owner of IHS’s African tower portfolio.

MTN had offered $8.50 per IHS share for the broader acquisition, representing a 9.7 percent premium to IHS’s 30-day volume-weighted average price as of February 4, the final trading session before MTN issued its cautionary announcement.

The planned local sell-down effectively means MTN could consolidate ownership of the Nigerian tower business while simultaneously meeting regulatory requirements to broaden domestic participation in the asset.

IHS Nigeria operates approximately 18,000 telecommunications towers across the country, making it a major provider of infrastructure supporting mobile network operators.