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MTN Pens Agreement To Acquire IHS Towers In $6.2 Billion Deal

MTN Group has reached an agreement to acquire IHS Towers, one of the world’s largest independent owners and operators of shared telecom infrastructure, in an all-cash transaction that values the company at an enterprise value of approximately $6.2 billion.

The deal follows weeks of negotiations between both parties, which had been publicly reported earlier this month.

Under the terms of the merger agreement, IHS shareholders will receive $8.50 per ordinary share in cash, representing a 36% premium to its 52-week volume-weighted average price, and a modest 3% premium to its unaffected closing price of $8.23 on February 4, 2026.

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Chairman and CEO of IHS Towers, Sam Darwish, described the agreement as a compelling opportunity to crystallise value built over the company’s 25-year history.

“Today’s announcement creates a compelling opportunity that provides certainty and immediate returns for our shareholders, enabling them to crystallise the significant value generated during our strategic review.

“The proposed transaction deepens our long-standing partnership with MTN, as it combines Africa’s largest mobile network operator with one of its largest digital infrastructure platforms, and underscores the strong connection between IHS Towers and the African continent,” he said.

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MTN’s Group President and CEO, Ralph Mupita, said the transaction would strengthen the company’s strategic and financial position as digital infrastructure becomes increasingly central to economic development on the continent.

“This transaction gives us a unique opportunity to buy back our towers and strengthen our ability to be partners for progress to the nation-states in which we operate.

“For IHS customers and partners across the continent, we commit to continuing high standards of service and the right governance of what is the largest standalone and integrated tower company in Africa, enabled by the excellent people within HIS,” he said.

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IHS Towers’ Board of Directors has unanimously approved the transaction and recommended it to shareholders.

MTN, which already holds roughly 24% of IHS on a fully diluted basis, has committed to vote its shares in favour of the deal. Long-term investor Wendel has also pledged support, bringing total committed backing to more than 40% of shareholders.

Under the terms, shareholders will receive immediate cash consideration, offering a defined exit following a strategic review initiated amid geopolitical and macroeconomic volatility in key markets.

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The agreement followed an earlier report that MTN Group was in talks to acquire the roughly 75% stake in IHS Holding Limited that it does not already own.

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In a cautionary notice to investors earlier in the month, MTN confirmed it was evaluating a potential transaction to buy out minority shareholders of the New York Stock Exchange-listed IHS, following recent market speculation around the company.

MTN in the notice, MTN warned that if a deal is concluded, it could have a material impact on its share price, urging shareholders to exercise caution when trading the stock until further announcements are made.

The transaction is expected to close in 2026, subject to shareholder and regulatory approvals as well as other customary conditions.

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Funding will come from a combination of MTN’s existing stake rollover, approximately $1.1 billion in cash from MTN, about $1.1 billion from IHS Towers’ balance sheet, and the rollover of existing IHS debt.

The company must also maintain a minimum cash balance of $355 million at closing.

Completion is partly dependent on IHS successfully divesting its Latin American tower business and its fibre operations, both announced in February 2026.

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J.P. Morgan is serving as financial advisor to IHS Towers, while Latham & Watkins LLP and Walkers (Cayman) LLP are acting as legal counsel.

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Adebayo

Adebayo is a Content Developer and website manager who loves to learn, unlearn and relearn. He has a knack for exploring the tech world. He is always thirsty to learn as the tech ecosystem evolves every day.

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