MTN GROUP has confirmed it is in late-stage discussions that could see it acquire full ownership of IHS Holding Limited, one of the world’s largest independent telecommunications tower operators. The proposed transaction would involve MTN buying the approximately 75 percent of IHS shares it does not already control, giving Africa’s biggest mobile network operator complete command of a key piece of global digital infrastructure.

The development was disclosed in a cautionary notice to investors on Thursday, after weeks of speculation in the market over a possible bid for the New York Stock Exchange–listed company. MTN said it is currently evaluating a potential offer, though it stressed that the talks are still preliminary and that no binding agreement has been reached.

If MTN proceeds, the offer price would likely be set close to IHS’s most recent trading levels on the NYSE as of February 4, 2025. The timing is notable, as IHS shares have climbed sharply in recent months, reflecting renewed confidence in telecom infrastructure companies that benefit from rising data usage and long-term lease revenues.

Despite the advanced nature of the talks, MTN cautioned that there is no certainty the transaction will be concluded. The company warned that a successful deal could have a material impact on its own share price and urged shareholders to exercise care when trading until further updates are released.

A deep, decade-long relationship

MTN is already closely linked to IHS through both ownership and operations. The telecoms group holds a significant equity stake in the tower company and is its largest customer across several African markets. Over the past decade, the two companies have worked together extensively, particularly through sale-and-leaseback agreements that reshaped how MTN manages its network infrastructure.

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Under those arrangements, MTN sold thousands of passive network sites to IHS while signing long-term master lease agreements that guaranteed continued access to the towers. One of the most significant of these transactions occurred in South Africa in 2022, when MTN transferred more than 5,700 towers to IHS.

These deals allowed MTN to release capital previously tied up in physical assets and redirect funds toward expanding its network, improving services, and strengthening its balance sheet. For IHS, the transactions helped build a large, diversified tower portfolio and a stable stream of long-term rental income.

A strategic pivot

Should the acquisition go ahead, it would represent a major shift in MTN’s strategy. For years, telecom operators across Africa and other emerging markets have increasingly outsourced tower ownership to specialised infrastructure firms, arguing that it is more efficient to lease rather than own these assets. A full buyout of IHS would effectively reverse that trend for MTN, bringing a large portion of its tower infrastructure back under direct control.

Analysts say such a move could give MTN greater influence over network costs and expansion plans, especially as mobile data traffic continues to surge. However, it would also mean taking on the operational and financial responsibilities that come with managing a large infrastructure portfolio.

MTN said that if the talks fail to produce a deal, it will continue to look for other ways to unlock value from its investment in IHS, in line with its disciplined capital allocation framework.

IHS Towers was founded in 2001 by Sam Darwish, starting as a small Nigerian company focused on building and managing communication towers. Over two decades, it has grown into a global infrastructure player.

Today, the company is headquartered in London and operates more than 37,000 towers across seven markets in Africa, including Nigeria, South Africa, Cameroon, Côte d’Ivoire and Zambia, as well as in Latin America, notably Brazil and Colombia. It became a publicly listed company in 2021 following its initial public offering on the New York Stock Exchange.

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IHS is now the leading independent tower operator in several of its core markets. Its business model is based on colocation, allowing multiple mobile network operators to share the same infrastructure. This reduces costs, speeds up network deployment, and supports the expansion of mobile services in fast-growing economies.

Changing industry landscape

The potential takeover reflects broader shifts in Africa’s telecom infrastructure sector. As data demand rises and economic pressures persist, operators are re-evaluating whether owning or leasing critical assets offers better long-term value. The outcome of MTN’s talks with IHS could set a new direction for how telecom companies manage their networks across the continent.

Further announcements are expected as discussions continue.