MTN Group has reached an settlement to amass IHS Towers, one of many world’s largest unbiased house owners and operators of shared telecom infrastructure, in an all-cash transaction that values the corporate at an enterprise worth of roughly $6.2 billion.
The deal follows weeks of negotiations between each events, which had been publicly reported earlier this month.
Beneath the phrases of the merger settlement, IHS shareholders will obtain $8.50 per atypical share in money, representing a 36% premium to its 52-week volume-weighted common worth, and a modest 3% premium to its unaffected closing worth of $8.23 on February 4, 2026.
What they’re saying
Chairman and CEO of IHS Towers, Sam Darwish, described the settlement as a compelling alternative to crystallise worth constructed over the corporate’s 25-year historical past.
“In the present day’s announcement creates a compelling alternative that gives certainty and speedy returns for our shareholders, enabling them to crystallize the numerous worth generated throughout our strategic evaluation.
“The proposed transaction deepens our long-standing partnership with MTN, because it combines Africa’s largest cellular community operator with one in every of its largest digital infrastructure platforms, and underscores the robust connection between IHS Towers and the African continent,” he stated.
MTN’s Group President and CEO, Ralph Mupita, stated the transaction would strengthen the corporate’s strategic and monetary place as digital infrastructure turns into more and more central to financial growth on the continent.
“This transaction offers us a novel alternative to purchase again our towers and strengthen our potential to be companions for progress to the nation-states through which we function.
“For IHS clients and companions throughout the continent, we decide to persevering with excessive requirements of service and the appropriate governance of what’s the largest standalone and built-in tower firm in Africa, enabled by the superb individuals inside HIS,” he stated
IHS Towers’ Board of Administrators has unanimously accepted the transaction and really helpful it to shareholders.
MTN, which already holds roughly 24% of IHS on a totally diluted foundation, has dedicated to vote its shares in favour of the deal. Lengthy-term investor Wendel has additionally pledged help, bringing whole dedicated backing to greater than 40% of shareholders.
Beneath the phrases, shareholders will obtain speedy money consideration, providing an outlined exit following a strategic evaluation initiated amid geopolitical and macroeconomic volatility in key markets.
Backstory
The settlement adopted an earlier report that MTN Group was in talks to purchase the roughly 75% stake in IHS Holding Restricted that it doesn’t already personal.
- In a cautionary discover to traders earlier within the month, MTN confirmed it was evaluating a possible transaction to purchase out minority shareholders of the New York Inventory Trade-listed IHS, following latest market hypothesis across the firm.
- MTN within the discover, MTN warned that if a deal is concluded, it might have a fabric influence on its share worth, urging shareholders to train warning when buying and selling the inventory till additional bulletins are made.
Extra insights
The transaction is anticipated to shut in 2026, topic to shareholder and regulatory approvals in addition to different customary circumstances.
- Funding will come from a mix of MTN’s current stake rollover, roughly $1.1 billion in money from MTN, about $1.1 billion from IHS Towers’ stability sheet, and the rollover of current IHS debt.
- The corporate should additionally preserve a minimal money stability of $355 million at closing.
- Completion is partly depending on IHS efficiently divesting its Latin American tower enterprise and its fibre operations, each introduced in February 2026.
J.P. Morgan is serving as monetary advisor to IHS Towers, whereas Latham & Watkins LLP and Walkers (Cayman) LLP are appearing as authorized counsel.
On MTN’s facet, BofA Securities and Citigroup World Markets Restricted are appearing as monetary advisors, with Cravath, Swaine & Moore LLP offering authorized recommendation.
What it’s best to know
Based in 2001 by Sam Darwish with an preliminary deal with Nigeria, IHS Towers has grown into one of many world’s largest unbiased house owners and operators of shared telecommunications infrastructure.
Headquartered in London and listed on the NYSE following its 2021 preliminary public providing, IHS manages greater than 37,000 towers throughout seven markets in Africa, together with Nigeria, South Africa, Cameroon, Côte d’Ivoire and Zambia, in addition to Latin American markets similar to Brazil and Colombia. MTN stays its largest customer.
