MTN’s $6.2bn IHS buyback redraws Africa’s telecom infrastructure map

AFTER nearly a decade of selling off its network towers to focus on lighter balance sheets, MTN Group Limited is making a dramatic return to infrastructure ownership. The telecom giant has agreed to acquire IHS Holding Limited in an all-cash deal valued at about $6.2 billion, reversing one of the most defining strategies in Africa’s telecom sector.

The agreement, announced Tuesday, brings IHS back under the control of one of its original anchor tenants and minority owners. For MTN, 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.

Premium offer seals deal

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.

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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.

A shift from asset-light thinking

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.

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.

Board backing and investor support

The transaction has already secured significant shareholder backing. IHS’s board has unanimously approved the agreement and recommended that investors vote in its favour. MTN has committed to support the deal with all of its shares, while long-term shareholder Wendel S.A. has also issued a letter endorsing the transaction. Together, the two account for more than 40 percent of IHS’s voting power, providing a strong foundation for final approval.

Chairman and Chief Executive of IHS, Mr Sam Darwish, said the deal offers shareholders certainty and immediate value following the strategic review launched amid macroeconomic and geopolitical volatility across several of the company’s key markets.

From a single tower to a global platform

Founded 25 years ago, IHS began with just one tower in one market. Over time, it expanded into 11 countries and, at its peak, managed nearly 40,000 towers. This growth made it one of the world’s largest independent tower operators by number of sites, serving multiple mobile network operators across Africa, Latin America, and the Middle East.

Under MTN’s ownership, the business will be folded into a vertically integrated structure, creating what would be the largest combined tower and network operator platform in Africa.

Funding the acquisition

The $6.2 billion purchase will be funded through a combination of equity rollovers, internal cash, and balance sheet resources. MTN will roll over its existing stake in IHS and contribute around $1.1 billion in cash. IHS will provide roughly $1.1 billion from its own cash reserves and will retain a minimum of $355 million on its balance sheet at closing. Existing IHS debt will also be rolled over as part of the transaction.

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Completion is targeted for 2026 and is subject to regulatory and shareholder approvals. Certain financing conditions are tied to IHS’s proposed sale of its Latin American tower operations and its fibre business, both announced earlier in February.

Advisers and market implications

J.P. Morgan is advising IHS, while BofA Securities and Citigroup Global Markets are acting for MTN.

Beyond its financial scale, the transaction reflects a broader shift across Africa’s telecom industry. As data becomes the core product and infrastructure the key competitive edge, operators are rethinking the asset-light strategies that once defined the sector. MTN’s move may signal the start of a new phase in which ownership of towers is once again seen as a strategic necessity rather than a burden.