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MTN Moves To Take IHS Towers Private In $2.2 Billion Deal

Adejuyigbe Adegoke

Africa’s telecom infrastructure is on the brink of a significant change as MTN Group plans to take full control of IHS Holding Limited in a proposed buyout deal worth $2.2 billion.

The acquisition proposal, which puts a price tag of $8.50 per share on IHS, would allow MTN to buy up all the outstanding shares of IHS Holding. This move would take the company off the New York Stock Exchange (NYSE), and turn it into a privately held subsidiary under MTN’s umbrella.

But this transaction is more than just a simple corporate takeover. It signals a significant strategic shift happening in Africa’s telecommunications landscape, where operators are increasingly looking to take direct control of infrastructure assets that were once managed by independent tower companies.

If shareholders give the green light, this deal could dramatically alter ownership structures, competitive dynamics, and investment strategies in Africa’s digital economy.





Background: The Rise of IHS Towers

From Infrastructure Specialist to Global Tower Giant

IHS Holding Limited has earned a solid reputation as one of the biggest independent telecommunications tower operators in emerging markets.

The company has crafted its business model around the ownership, operation, and leasing of telecom towers to various mobile network operators. This strategy of sharing infrastructure has gained traction throughout Africa, as it helps to minimize asset duplication and cut down on capital expenditure for telecom companies.

Over the years, IHS expanded aggressively across:

IHS’s portfolio expanded to include tens of thousands of towers, catering to major mobile operators in emerging markets. In Nigeria, it became particularly significant, establishing itself as a key infrastructure provider that bolstered mobile connectivity, internet access, and data growth.

MTN and IHS: A Relationship Years in the Making

Strategic Dependence Between Both Companies

While IHS has tried to present itself as an “independent” tower company, its ties with MTN Group have always been surprisingly strong.

MTN has historically been:

This close operational partnership has made MTN a key player in ensuring IHS’s revenue stability and driving its infrastructure growth.

So, rather than looking like a hostile takeover, this proposed acquisition seems more like the natural outcome of a long-term strategic partnership.

By taking IHS private, MTN would essentially bring a vital piece of its infrastructure supply chain in-house.

Key Details of the Buyout Proposal

Offer Structure

According to the regulatory documents filed with the U.S. Securities and Exchange Commission (SEC), MTN is planning to buy up all the remaining shares of IHS Holding.

Once completed, the transaction would:

  1. Delist IHS from the NYSE
  2. End its status as a publicly traded company
  3. Convert it into a wholly owned MTN subsidiary

The board of IHS has reportedly unanimously approved the deal, describing it as fair and aligned with shareholder interests.

Shareholder Voting Dynamics

MTN Already Holds Strong Voting Influence

One of the most significant aspects of the proposed merger is MTN’s existing voting power within IHS.

MTN subsidiaries reportedly already control more than:

In addition, another major shareholder associated with French investment firm, Wendel, has agreed to support the transaction.

Combined, these blocs account for more than:

This gives MTN a solid boost as they gear up for the extraordinary general meeting set to happen in London later this year.

While they still need the green light from shareholders, the current support indicates that the proposal is likely to pass unless some serious pushback comes from minority investors.

Why MTN Wants Full Control of IHS

1. Infrastructure Control

Telecom infrastructure is increasingly becoming a strategic asset rather than a utility service.

By acquiring IHS outright, MTN would gain:

This could become particularly important as African markets experience rising data consumption and rapid mobile broadband growth.

2. Cost Optimisation

Tower leasing agreements often expose telecom operators to:

Owning the infrastructure directly could help MTN better manage operational costs over time.

This is especially relevant in African markets where currency depreciation has heavily impacted telecom profitability in recent years.

3. Competitive Positioning

Control over infrastructure can create strategic advantages, including:

MTN may also see tower ownership as critical for maintaining market leadership against competitors such as:

A Broader Industry Shift Across Africa

Telecom Operators Are Reclaiming Infrastructure

The proposed acquisition reflects a wider strategic shift underway across Africa’s telecom sector.

Over the past decade, telecom companies largely embraced infrastructure outsourcing by selling towers to independent operators. This allowed them to reduce debt and focus on customer services.

However, industry dynamics are changing.

Key Drivers Behind the Shift

Rising Data Demand

Africa’s internet economy is expanding rapidly due to:

Telecom operators now view infrastructure ownership as strategically essential for supporting long-term growth.

Currency Volatility

Many operators in Africa make their money in local currencies, but they often have to cover infrastructure costs that are linked to dollars or agreements that adjust with inflation. This situation has really tightened profit margins, especially in countries like Nigeria and Ghana. Having direct ownership allows these operators to enjoy more financial flexibility.

Energy Challenges

Power costs remain one of the largest expenses for telecom infrastructure across Africa.

Operators increasingly want direct control over:

This explains why infrastructure management is becoming strategically important again.

Examples of Industry Re-Integration

Airtel Africa’s Fibre Expansion

In 2024, Airtel Africa took a significant step by launching its own fibre infrastructure business, aiming to gain better control over its broadband delivery systems. This move represents a clear shift away from depending on third-party infrastructure providers.

Safaricom’s Infrastructure Management Push

In a notable shift, Safaricom has taken steps to directly manage the power systems for its telecom sites, aiming to lessen its reliance on outside tower operators. This move reflects a larger trend towards becoming more self-sufficient in infrastructure.

Implications for Africa’s Digital Economy

Potential Benefits

If MTN successfully acquires IHS, several benefits may emerge:

Faster Network Expansion

Integrated infrastructure ownership may accelerate:

Improved Operational Efficiency

Closer coordination between infrastructure and network operations could reduce:

Stronger Long-Term Investment Planning

Private ownership could give IHS the freedom to concentrate on long-term infrastructure projects without the constant pressure of meeting quarterly earnings expectations that come with being in the public markets.

Potential Risks and Concerns

Reduced Infrastructure Neutrality

One worry is whether IHS will still function as a neutral host infrastructure provider after being completely owned by MTN.

Competitors may fear:

Maintaining infrastructure neutrality could become a key regulatory issue.

Reduced Market Competition

Independent tower companies have long played a vital role in fostering competition by ensuring that various operators have equal access to their infrastructure. However, the current trend of consolidation could undermine that independence, potentially altering the competitive landscape of telecom markets across Africa.

Regulatory Scrutiny

Given IHS’s strategic role in telecommunications infrastructure, regulators in multiple jurisdictions may closely examine:

Approval processes could therefore become lengthy and complex.

The End of IHS Towers as a Public Company?

A Short NYSE Journey

IHS’s possible departure from the public markets is especially significant since the company just made its debut on the NYSE in 2021, right when there was a strong demand from investors for digital infrastructure assets.

At the time, tower companies were viewed globally as:

The landscape of investment has changed due to evolving macroeconomic conditions, increasing interest rates, currency challenges, and new strategies in the telecom sector. Now, just a few years after going public, IHS might be on the verge of going private again.

Strategic Significance of the Deal

The MTN-IHS transaction represents more than a merger between two companies.

It signals:

As Africa’s digital economy continues to grow, owning towers, fiber networks, power systems, and data infrastructure is becoming crucial for gaining a competitive edge. This proposed acquisition shows that telecom operators are increasingly viewing infrastructure not just as a support function, but as a vital strategic asset.

Conclusion

The potential acquisition of IHS Holding Limited by MTN Group could turn out to be one of the most significant telecom infrastructure deals we’ve seen in Africa in recent years.

With shareholders already showing strong support for MTN, this transaction seems to be gaining serious momentum as we approach the extraordinary general meeting.

But this deal is about more than just the numbers; it highlights a broader shift happening in Africa’s telecom sector — where operators are increasingly taking back control of the infrastructure that supports the continent’s digital future.

If this deal goes through, it might signal the end of IHS Towers as an independent public entity, but it could also usher in a new chapter in how telecom infrastructure is owned, managed, and strategically utilised across Africa.

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