All things being equal, strong indications have started to emerge on the clear possibility of Africa’s largest mobile network operator, MTN Group acquiring the remaining 75% stake in IHS Towers, having been with 25% before now.
Business Hilights reports that IHS is a major telecommunications infrastructure company which has been driving network reliability in Nigeria via its multi base stations and telecoms infrastructurefacilities nationwide.
Whereas the proposed transaction is alued at approximately $2.76 billion, if consummated, will marks a significant strategic shift for MTN and could reshape the telecom infrastructure landscape across Africa and other emerging markets.
Recall that before now, MTN owns roughly 25 % of IHS Towers, having sold most of its tower assets to the company in a landmark infrastructure deal back in 2014. The latest talks are focused on purchasing the remaining 75% of IHS that it does not yet control, with the valuation based on IHS’s latest closing price on the New York Stock Exchange, where it is publicly listed — along with a listing in Frankfurt.
However, industry observers say regaining Control of Critical Infrastructure will among other things give MTN direct control over a large pool of critical telecom infrastructure, potentially improving operational efficiency and reducing long-term costs. This shift aligns with ongoing industry trends where operators seek to integrate infrastructure assets more closely with network operations.
Besides, it would deepen MTN Nigeria’s cost efficiency, enhance network performance, optimize costs, and reduce dependence on external providers. Tower companies traditionally operate on long-term lease models, but direct ownership can bypass lease costs and support faster network upgrades, especially as demand for data continues growing across Africa.
