MTN Group, Africa’s largest telecommunication firm, is spending $2.2 billion to regain management of practically $4.8 billion value of telecom towers throughout Africa from IHS Holdings. On the similar time, it’s assuming accountability for one of many sector’s largest debt burdens.
The transaction values the tower operator at roughly $2.9 billion in fairness and implies an enterprise valuation of about $6.2 billion, together with its Latin American operations. As soon as ongoing divestments are accomplished, MTN will retain an African tower portfolio value roughly $4.8 billion.
The deal arrives as IHS faces rising balance-sheet strain. After years of enlargement financed largely with dollar-denominated debt, foreign money volatility, rising diesel prices, and looming maturities have tightened the corporate’s funds. Asset gross sales throughout a number of markets have adopted, as refinancing situations for standalone tower operators deteriorate.
Integration into MTN would supply entry to a stronger steadiness sheet and a dependable anchor tenant at a essential juncture for the corporate.
Stability sheets shifting in reverse instructions
In 2025, IHS bought its Rwandan subsidiary, together with 1,467 websites, to Paradigm Tower Ventures. On February 11, 2026, it agreed to promote its 51% stake in I-Methods in Brazil. On February 17, the corporate moved to divest its Brazilian and Colombian holdings for an enterprise worth of $925 million.
IHS’s debt profile has turn into more and more strained. As of the third quarter of 2025, the corporate carried $3.27 billion in borrowings, about 85% denominated in international foreign money, with vital maturities due between 2026 and 2027.
That debt construction has turn into tougher to handle throughout working environments formed by foreign money volatility and rising power prices.
Diesel stays a major energy supply for telecom towers throughout a lot of Africa, exposing operators to gas inflation and provide disruptions. On the similar time, native foreign money depreciation has elevated the actual value of servicing dollar-denominated money owed, whereas revenues stay tied to long-term lease contracts negotiated years earlier.
These contracts present income stability however restrict pricing flexibility, leaving tower corporations slower to reply when working prices surge.
Though IHS reported greater than $1 billion in liquidity, together with unrestricted money and accessible credit score amenities, the corporate has cautioned that sustaining operations and funding development past the close to time period would rely on stronger money era or further financing.
MTN enters the transaction from a place of relative balance-sheet energy. The group reported internet debt of $2.54 billion as of December 2024 and liquidity of about $2.28 billion as of September 2025, supported by bettering working money flows and dividend upstreaming from key subsidiaries.
With internet debt-to-EBITDA round 0.4×, that means its debt is lower than half of 1 12 months’s working earnings, MTN has the capability to imagine leverage that will probably show costlier for a standalone tower operator to refinance in present markets.
The group reported internet debt of $2.54 billion as of December 2024 and liquidity of $2.28 billion as of September 2025.
As soon as IHS’s property and liabilities are consolidated, MTN’s internet debt may rise towards $4.8 billion, pushing leverage nearer to the 1.0 to 1.2× vary, roughly equal to at least one 12 months of working earnings
In sensible phrases, MTN is selecting to soak up short-term balance-sheet strain in alternate for long-term management over infrastructure it already is determined by, and already pays billions yearly to make use of.
Internalising lease funds
IHS generated $1.33 billion in income as of September 2025 and reported revenue of $210.4 million for the interval.
As of Q3 2025, about 62% of IHS’s income got here from MTN working corporations, significantly MTN Nigeria. Yearly, MTN pays tower lease charges that in the end turn into income and revenue inside IHS. Shopping for the corporate successfully turns these funds into inside transfers. As an alternative of paying lease, MTN captures the margin.
On the finish of 2024, lease legal responsibility throughout MTN Group stood at $4.65 billion. After the acquisition, MTN says income earned from MTN’s working corporations shall be eradicated, eradicating a good portion of tower rental bills and producing roughly $1.1 billion in financial savings.
A return to infrastructure possession
The acquisition marks a strategic return to asset possession after years by which telecom operators globally pursued tower outsourcing to unlock capital. Proudly owning the infrastructure permits MTN to internalise lease economics, seize embedded margins, and coordinate community funding choices extra tightly throughout markets.
That flexibility issues as operators put together for denser 5G deployments, fibre enlargement, and rising power prices. Vitality optimisation alone may materially change tower economics in markets the place diesel stays a dominant value driver.
By integrating tower possession, MTN expects to enhance value predictability, remove tower rental bills, and enhance third-party tenancy throughout websites.
The corporate has emphasised that IHS will preserve an arms-length open-access coverage, permitting rivals reminiscent of Airtel to proceed leasing area and producing wholesale income. Airtel accounted for roughly 15% of IHS income as of Q3 2025.
However MTN will now collectively management choices round densification, energy options, and long-term infrastructure funding. In brief, MTN expects to create extra worth by proudly owning tower infrastructure slightly than leasing it. For IHS, the deal resolves a lot of its near-term financing pressures.
Integration and governance
MTN plans to fold IHS into its digital infrastructure subsidiary, Bayobab, as a standalone unit, sustaining separate governance and administration to protect operational continuity.
Current contracts between MTN working corporations and IHS will proceed uninterrupted, making certain service continuity for MTN and its rivals.
The transaction will proceed underneath Cayman Islands merger guidelines and requires shareholder approval in addition to regulatory clearance throughout every working jurisdiction.
MTN has already secured over 40% of votes, its personal stake mixed with Wendel’s 19%, in the direction of the 2‑thirds wanted.
Nigeria’s Ministry of Communications, Innovation, and Digital Economic system has mentioned it’s going to evaluation the transaction in keeping with its goal “to make sure that any market consolidation or structural adjustments shield customers, safeguard investments, and protect the long-term sustainability of the sector.”
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