MTNN rallies to record N780 as market cheers IHS takeover

SHARES of MTN Nigeria Communications Plc (MTNN) climbed to an unprecedented N780 on Thursday, reflecting strong investor confidence following the company’s $6.2 billion acquisition of IHS Towers.

The transaction gives MTN full ownership of roughly 29,000 tower sites across Africa, bringing an end to its previous asset-light approach that relied heavily on leasing infrastructure. With the buyout, the telecom operator transitions from renting tower space to directly controlling the assets that underpin its network operations.

Analysts say the shift is expected to improve earnings quality by capturing margins previously paid as lease rentals, reducing exposure to foreign exchange (FX)-linked lease obligations, and strengthening oversight of infrastructure vital to 5G deployment.

The development has reshaped market perception of the company’s long-term value. MTNN’s market capitalisation rose beyond N16 trillion to about N16.376 trillion, supported by its 20.995 billion outstanding shares, as investors price in stronger and more predictable cash flows.

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By the close of trading on Thursday, February 19, the stock had advanced by N30, representing a 4 percent gain from its opening price of N750.

IHS Towers ranks among the largest independent tower operators globally, with nearly 29,000 towers in Africa serving multiple mobile network operators across five major MTN markets.

The N780 price marks MTNN’s highest level in 52 weeks, compared with a low of N230 within the same period. A total of 7,169,766 shares valued at N5.542 billion exchanged hands during the session.

Documents show that employees of IHS Towers will receive compensation and core benefits on favourable terms for up to 12 months following the proposed $2.2 billion merger with MTN Group.

IHS’s deal impact

The agreement, announced Tuesday, brings IHS back under the control of one of its original anchor tenants and minority owners. For MTNN, which had reduced its direct exposure to tower assets over the years, the transaction marks a major recalibration of its long-term strategy at a time when data traffic, digital services, and network reliability are becoming central to competitiveness.

Under the terms of the merger, IHS shareholders will receive $8.50 in cash for each ordinary share they hold. The price reflects a steep premium across multiple benchmarks. It is 239 percent higher than IHS’s share price on March 12, 2024, when the company announced it was exploring strategic options. It also represents a 36 percent premium to the firm’s 52-week volume-weighted average price as of February 4, 2026, and a three percent premium to the unaffected closing price of $8.23 recorded on the same date.

Once the transaction closes, IHS will be delisted from the New York Stock Exchange and operate as a wholly owned MTN subsidiary. This will end IHS’s life as a publicly traded independent tower company and integrate its operations directly into MTN’s broader network footprint across Africa.

Throughout the 2010s, many African telecom operators adopted an asset-light model, selling towers to specialist infrastructure firms in exchange for cash and long-term lease arrangements. MTN was among the most prominent adopters of that approach, retaining only a minority interest in IHS, about 24 percent on a fully diluted basis, while leasing back thousands of towers across its markets.

That model is now being reconsidered. Rapid growth in mobile data usage, the rollout of new digital services, and rising geopolitical and regulatory pressures have made physical infrastructure more strategically important than ever. By reclaiming IHS, MTN is signalling that ownership, not just access, is once again a priority.

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Group President and Chief Executive Officer of MTN, Mr Ralph Mupita, said the acquisition would strengthen the company’s strategic and financial position as digital infrastructure becomes increasingly central to Africa’s development. He added that direct control of tower assets would enhance MTN’s ability to work with governments and scale long-term connectivity projects across its footprint.

“Investors are excited about the IHS deal, which will likely raise MTNN’s profits from next year,” said an emerging markets expert, Mr Ike Ibeabuchi.

“Investors have priced in the IHS deal and are increasing their MTNN units or acquring new ones.”