Africa’s telecommunications landscape is undergoing a significant transformation as MTN Group pursues advanced talks to acquire the remaining 75% stake in IHS Holdings it does not already own. The deal values IHS Towers at approximately $2.76 billion and would give MTN full control of one of the continent’s largest independent tower infrastructure companies. This acquisition marks a notable shift in strategy for the mobile operator, which previously divested tower assets to focus on core telecommunications services.
The transaction would consolidate MTN’s position across critical markets including Nigeria and South Africa, where IHS operates thousands of towers that serve multiple mobile network operators. MTN has formally applied to the Johannesburg Stock Exchange for approval to complete what could become one of the most significant infrastructure deals in the company’s history. The move raises questions about how this vertical integration will affect competition, tower sharing arrangements, and the broader telecommunications ecosystem across Africa.
This acquisition comes at a time when telecommunications infrastructure ownership is being reconsidered by major operators across the continent. The deal’s implications extend beyond simple asset ownership to encompass operational challenges, partnership dynamics with competing mobile operators, and the strategic positioning of Africa’s largest mobile network operator in an increasingly competitive market.
Overview of the MTN Acquisition of IHS Towers
MTN Group is pursuing a $2.76 billion deal to acquire the remaining 75% stake in IHS Towers that it does not already own. The transaction represents a strategic shift for Africa’s largest mobile operator and involves complex negotiations, regulatory approvals, and significant market implications across multiple exchanges.
Key Details of the $2.76 Billion Mega Deal
MTN Group is in advanced talks to acquire the remaining shares of IHS Towers in a transaction valued at approximately $2.76 billion. The deal represents about R35 billion in South African currency.
MTN already owns 25% of IHS and operates as the tower company’s largest customer across multiple African markets. The proposed acquisition would give MTN full control of IHS Towers’ portfolio, which includes over 37,000 towers across Africa and Latin America according to some estimates, with other sources citing over 40,000 towers.
The approach remains non-binding at this stage. IHS Towers has confirmed that discussions are ongoing but noted there is no certainty that a transaction will be agreed upon or regarding the final terms of any potential agreement.
Market Value and Share Price Movements
IHS Towers is currently listed on the New York Stock Exchange, where its shares trade publicly. The $2.76 billion valuation reflects the market value being discussed for the 75% stake that MTN seeks to acquire.
MTN Group has formally applied to the JSE for approval to proceed with the acquisition. The Johannesburg Stock Exchange listing requirements necessitate shareholder approval for transactions of this magnitude.
The deal’s structure and share price implications depend on final negotiations between both parties. Market reactions and valuations will likely shift as more details emerge about the transaction terms and financing arrangements.
Entities Involved in the Negotiations
MTN Group serves as the acquiring entity in this transaction, leveraging its existing 25% ownership position in IHS. The telecommunications giant operates across multiple African markets where IHS maintains tower infrastructure.
IHS Towers was founded in Nigeria in 2001 by Sam Darwish and has grown into Africa’s largest independent owner and operator of shared communications infrastructure. Nigeria remains the company’s biggest market, and MTN serves as its largest customer.
The negotiations involve corporate leadership from both organizations, along with financial advisors and legal counsel. Investment banks and regulatory consultants are also participating in structuring the deal to meet requirements across multiple jurisdictions.
Regulatory Approval and Timeline
The transaction requires regulatory approval from multiple authorities across the jurisdictions where both companies operate. The South African Competition Commission will need to review the deal given MTN’s listing on the JSE and its headquarters in South Africa.
Additional approvals will be necessary in Nigeria, where IHS maintains its largest tower portfolio and operational presence. Other African markets where both entities operate will likely require competition authority clearances.
The timeline for completing the acquisition remains uncertain, as negotiations are still ongoing and regulatory reviews have not yet commenced. The companies have not announced an expected closing date for the transaction.
Strategic Implications for African Telecommunications
MTN’s acquisition repositions tower infrastructure as a strategic asset rather than a non-core holding, with immediate effects on capital allocation frameworks and competitive dynamics across African markets. The deal consolidates control over shared communications infrastructure while reshaping relationships between mobile operators and tower companies.
Unlocking Value and Capital Allocation
MTN’s move to acquire IHS represents a fundamental shift in how the company views tower infrastructure as a strategic asset rather than a disposable holding. The transaction allows MTN to unlock value through direct control of energy costs, network quality improvements, and 5G deployment capabilities.
The acquisition affects MTN’s capital allocation framework by converting ongoing lease payments into owned assets. This shift from an asset-light model to infrastructure ownership changes how the mobile operator deploys capital across its operations. By consolidating mtn tenancies under direct management, the company gains pricing control and operational flexibility.
The disciplined capital allocation approach reflects broader industry recognition that tower infrastructure ownership provides long-term strategic advantages. Direct control over the tower portfolio enables more efficient deployment of capital toward network expansion and technology upgrades.
Impact on African Markets and Mobile Operators
The potential acquisition marks a dramatic shift from the asset-light strategy that has dominated telecommunications in Nigeria and other African markets. Integration of over 40,000 towers into MTN’s corporate structure changes competitive dynamics for rival mobile operators who lease space from IHS.
Other carriers who rely on IHS infrastructure now face uncertainty about lease terms and network access under MTN ownership. This development contrasts with trends elsewhere, as operators like Telkom South Africa recently sold tower assets to Actis-led consortium for $371.5 million.
The transaction could trigger similar consolidation moves as mobile operators reassess whether shared communications infrastructure arrangements serve their competitive interests. African markets may see increased vertical integration as carriers weigh control benefits against capital requirements.
Expansion of Tower Infrastructure and Services
The consolidated tower company gains enhanced capacity to expand infrastructure across African markets where coverage gaps remain significant. Direct ownership allows MTN to prioritize build-to-suit projects aligned with its network strategy rather than relying on third-party tower operators.
MTN’s existing 26% stake in IHS Towers predates the company’s 2021 New York Stock Exchange listing, providing familiarity with tower operations. The first full year of operations under unified ownership will test whether infrastructure control delivers anticipated network quality and cost advantages.
The tower portfolio expansion supports 5G rollout requirements while positioning MTN to offer infrastructure services to other carriers. This dual role as both mobile operator and tower operator creates new revenue opportunities beyond traditional wireless services.
Partnership Dynamics and Governance Challenges
The relationship between MTN and IHS Towers has been marked by significant tension over ownership stakes and boardroom influence, with MTN’s 26% shareholding becoming a point of contention in corporate governance decisions. These disputes ultimately led to temporary fractures in their partnership before recent reconciliation efforts.
Evolution of the MTN-IHS Relationship
The partnership between MTN and IHS Towers began as a strategic infrastructure arrangement that saw IHS Holdings manage thousands of tower sites across multiple African markets. MTN served as the largest customer for IHS infrastructure, relying on the towerco for critical network deployment.
However, relations between the operator and towerco became strained over governance disagreements. The tension escalated to the point where MTN Nigeria struck a deal with American Tower to transfer control of 2,500 sites starting in early 2025, signaling a potential shift away from IHS.
Despite these challenges, both companies eventually recognized the value of their collaboration. IHS Towers and MTN Group renewed and extended all Master Lease Agreements with MTN Nigeria, demonstrating a commitment to repair the relationship. The companies completed the renewal of approximately 26,000 MTN tenancies across six African markets including Nigeria, Rwanda, Côte d’Ivoire, Cameroon, Zambia, and South Africa.
Ownership Structure and Shareholder Roles
MTN held a 26% stake in IHS Towers, making it a significant minority shareholder in the towerco. This ownership position gave MTN considerable financial exposure but limited control over strategic decisions. Other major shareholders included institutional investors like GIC, Singapore’s sovereign wealth fund.
The ownership structure created an unusual dynamic where MTN functioned simultaneously as both the largest customer and a major shareholder. This dual role complicated negotiations over lease terms, power management services, and infrastructure expansion priorities.
MTN Group leadership under Ralph Mupita sought to leverage the company’s shareholding for greater strategic influence. The operator believed its substantial equity position warranted more input on operational decisions and long-term strategy, particularly given its importance as a tenant.
Boardroom Disputes and Governance Issues
The core governance dispute centered on MTN’s desire for more influence to vote in board members, which IHS Towers management pushed back against. Sam Darwish, founder of IHS Holdings, maintained that the existing governance structure appropriately balanced shareholder interests.
MTN argued its 26% stake justified additional board representation and voting rights. The operator wanted greater say in capital allocation decisions, market expansion strategies, and pricing negotiations for tower leases and power management services.
IHS Towers and MTN Group eventually committed to resolving governance issues through continued dialogue. The companies acknowledged that their partnership remained crucial for delivering connectivity across challenging African markets, prompting both sides to find common ground on board composition and decision-making processes.
Operational and Market Impact in South Africa and Beyond
The acquisition brings MTN direct control over 5,701 towers and approximately 13,000 sites across South Africa, fundamentally changing how the operator manages its infrastructure and power systems. This shift affects not only tower ownership but also the broader ecosystem of third-party sites and engineering services that support network operations.
Acquisition of 5,701 Towers and Related Assets
MTN finalized the sale of over 5,700 towers to IHS Towers for $413 million in a previous transaction. This new mega deal reverses that arrangement, bringing the tower portfolio back under MTN’s operational control.
The 5,701 towers represent a significant portion of South Africa’s telecom infrastructure. The assets include not just the physical tower structures but also the ground leases, maintenance contracts, and existing tenant agreements that were previously managed by IHS.
MTN SA now operates these towers alongside its network equipment, eliminating the lease-back arrangements that characterized the previous ownership structure. The South Africa telecom tower market is expected to reach $461.60 million in 2025, making this portfolio particularly valuable.
Role of Third-Party Sites and Power Management
The 13,000 sites under MTN’s control include both company-owned towers and third-party locations. These third-party sites provide coverage in areas where building new infrastructure would be cost-prohibitive.
Power management services constitute a critical component of tower operations in South Africa. IHS previously managed backup power systems, diesel generators, and battery installations across the portfolio. MTN must now absorb these power management responsibilities and the associated engineering expertise.
The operational complexity extends beyond basic tower maintenance. Power management in South Africa requires specialized knowledge of load shedding schedules, renewable energy integration, and fuel logistics. The transition of these services from IHS to MTN affects thousands of daily operational decisions across the network.
Future Prospects in Emerging Markets
The Africa telecom towers market is worth $4.03 billion in 2026 and continues growing at 3.35% annually. MTN’s acquisition positions the company to pursue similar infrastructure strategies across its African footprint.
TowerXchange tracks 96,672 telecom towers owned by towercos out of 183,064 total towers in sub-Saharan Africa. This market structure may shift as operators reassess whether tower ownership or lease arrangements better serve their strategic goals.
The engineering expertise MTN gains through this acquisition could support expansion into other markets where it operates. Countries with similar infrastructure challenges may see MTN apply lessons learned from integrating the South African tower portfolio.