In a significant move, MTN Group is poised to take over full control of IHS Towers, one of Africa’s largest independent tower companies. The acquisition, valued at $2.2 billion, involves MTN buying the 75% stake in IHS that it does not already own.
MTN’s CEO Ralph Mupita expressed optimism about the acquisition, stating it is a strategic step to strengthen MTN’s financial standing. “This transaction gives us a unique opportunity to buy back our towers and strengthen our ability to be partners for progress,” Mupita said. The reintegration of tower assets is expected to boost MTN’s African operations and enhance financial metrics.
The deal isn’t without hurdles. Regulatory bodies will likely scrutinize the impact on competition, since IHS also rents infrastructure to MTN’s competitors across Africa. In recent years, MTN followed an asset-light approach, selling many of its tower assets primarily to IHS. However, the partnership faced challenges, with MTN expressing concerns about IHS’s governance practices.
Compounding issues, IHS faced significant financial losses due to Nigeria’s naira devaluation in 2023, prompting MTN to seek revised lease terms. This evolving relationship has driven MTN to simplify its operations and alleviate long-term lease liabilities by acquiring IHS Towers.
Industry analysts are keenly observing whether MTN’s consolidation of roughly 29,000 tower sites aligns with expected financial and strategic objectives. The acquisition might set a trend, prompting competitors to consider tower buybacks, explore new sharing deals, or continue partnering with independent tower companies.
The coming months will shed light on how this acquisition unfolds and its broader implications on the telecommunications landscape in Africa. Stay informed with developments through the Total Telecom newsletter.
