MTN Group Africa’s largest mobile network operator is in advanced discussions to acquire the remaining 75 percent stake in IHS Towers a deal that could value the tower infrastructure company at about 2.76 billion dollars. The potential acquisition signals a major strategic shift for MTN as it seeks greater control over critical network assets across its key markets.
According to a report by Reuters the telecoms giant is negotiating to purchase the shares in IHS Holdings that it does not currently own. Based on the latest closing price of IHS shares on the New York Stock Exce the transaction would place the company’s valuation at approximately 2.76 billion dollars.
MTN currently owns about 25 percent of IHS Towers a stake that originated from a landmark transaction in 2014 when MTN sold most of its tower assets in several African countries to IHS. Since then IHS has become the primary tower infrastructure provider for MTN across multiple markets including Nigeria.
MTN has stated that any potential offer would align with IHS’s prevailing market valuation. The company also clarified that discussions are ongoing and that no binding agreement has been reached at this stage. Market data shows that IHS Holdings which is listed in New York and Frankfurt recently closed with a market capitalisation of about 2.76 billion dollars.
If completed the acquisition would allow MTN to exert greater operational and financial control over infrastructure that is central to the performance and expansion of its mobile networks. Increased ownership could also help the group manage costs improve network efficiency and reduce reliance on third party providers over the long term.
MTN noted that should the talks fail to result in a deal it would explore alternative ways to unlock value from its existing stake in IHS within its capital allocation framework. Both companies maintain a strong commercial relationship with MTN remaining IHS’s largest customer in several African markets making the outcome of the talks significant for both parties.
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