MTN strikes to take full management of IHS Towers in $2.2 billion deal

MTN Group, Africa’s largest telecom operator, is transferring to take full possession of IHS Towers in a $2.2 billion deal that might consolidate management of practically 29,000 telecom towers throughout Africa and mark a significant strategic shift for the continent’s largest cellular community operator.

IHS Towers accepted a suggestion of $8.50 per share in a transaction that might enhance MTN’s stake to 100% and end in IHS being taken personal, MTN famous in an announcement on Tuesday despatched to TechCabal.

The proposed deal is topic to shareholder and regulatory approvals, in addition to the delisting of IHS from the New York Inventory Trade. 

MTN owns roughly 24.7% of IHS and intends to accumulate all excellent shares it doesn’t already maintain by means of a money merger.

The proposed acquisition marks a notable reversal of MTN’s earlier infrastructure technique. Like many telecom operators over the previous decade, MTN had separated its tower property to unlock capital and scale back capital depth. Now, the group is in search of to reintegrate these property, internalising tower lease margins it at present pays to IHS and capturing future third-party income progress straight.

Shares of IHS dropped to $8.16 on Tuesday night, February 17, 2026, after the announcement was made. 

The $8.50 per share provide within the MTN deal represents a 9.7% premium to IHS’s 30-day volume-weighted common worth as of 4 February 2026, the final buying and selling day earlier than MTN launched its cautionary announcement. 

For shareholders, the transaction supplies a chance to make income at a premium, significantly at a time when world tower valuations have confronted strain from increased rates of interest and forex volatility in rising markets.

The deal follows IHS’s introduced disposals of its Latin American property earlier in February 2026. 

Upon completion of these transactions, MTN intends to accumulate 100% of IHS’s remaining enterprise, primarily targeted on Africa. 

IHS is among the world’s largest unbiased tower firms, with practically 29,000 high-quality towers serving a number of cellular community operators in 5 key MTN markets.

“This proposed transaction is a pivotal step in additional strengthening MTN Group’s strategic and monetary place for a future the place digital infrastructure will grow to be ever extra important to Africa’s progress and improvement,” stated MTN Group President and Chief Government Officer, Ralph Mupita. 

He described the deal as a “distinctive alternative” to purchase again MTN’s towers and strengthen its potential to accomplice with governments throughout its markets.

MTN plans to fund the $2.2 billion acquisition utilizing roughly $1.1 billion in money on IHS’s steadiness sheet, alongside obtainable liquidity and debt on the group degree. 

The corporate said that no new fairness issuance could be required, though the funding construction, it famous, could result in a short-term enhance in leverage. MTN expects the transaction to be earnings-positive to each web revenue and money move.

Lengthy-term IHS shareholder Wendel has offered a letter of assist, committing to vote in favour of the transaction, and can obtain full liquidity upon closing. 

With Wendel’s backing and MTN’s personal voting rights, round 40% of the required two-thirds shareholder approval has successfully been secured.

“The proposed transaction deepens our long-standing partnership with MTN because it combines Africa’s largest cellular community operator with one among its largest digital infrastructure platforms and underscores the sturdy connection between IHS Towers and the African continent,” IHS Chairman and CEO, Sam Dawish, stated. 

If authorised, the transaction would create the biggest built-in tower platform in Africa below MTN’s management.