In a move that could fundamentally reshape the telecommunications landscape across emerging markets, MTN Group has formally approached the Johannesburg Stock Exchange (JSE) for approval to acquire a controlling interest in IHS Towers.
If successful, this transaction would represent one of the most consequential infrastructure consolidations in the history of African telecommunications, shifting MTN from a tenant to a dominant landlord of the continent’s digital backbone.
The Deal Structure
According to a formal disclosure issued to investors on the morning of Thursday, February 5, 2026, MTN is currently engaged in advanced negotiations to acquire a 75% equity stake in IHS Towers.
While the talks are at an advanced stage, the telecom giant maintained a tone of corporate prudence:
- Current Status: No definitive agreement has been signed.
- Shareholder Advisory: MTN has warned investors that the transaction is not guaranteed and could significantly impact the company’s stock price. Shareholders are urged to exercise caution until further updates are provided.
From Startup to Infrastructure Giant
IHS Towers boasts a storied history, beginning as a Nigerian startup in 2001. Over the last two decades, it has evolved into a global powerhouse:
- Global Footprint: Manages a portfolio of approximately 40,000 towers spanning Africa, Latin America, and the Middle East.
- Financial Health: Currently listed on the New York Stock Exchange (NYSE), IHS has seen a strong recovery. As of today, its market capitalization stands at $2.76 billion, with shares trading at $8.23.
- Market Concentration: Nigeria remains its crown jewel, contributing nearly 59% of IHS’s total revenue as of Q3 2025.
Strategic Rationale: A Shift in Vision
For years, the global trend for mobile network operators (MNOs) was “asset-light”, selling off towers to independent firms like IHS to reduce capital expenditure and leasing back space through co-location agreements. This potential acquisition signals a radical strategic reversal for MTN.
1. Vertical Integration and Control
By reclaiming direct ownership of its infrastructure, MTN moves away from the “neutral-host” model. This allows for greater autonomy over network rollouts, maintenance schedules, and technical upgrades without relying on a third-party intermediary.
2. Cost Optimization
Eliminating long-term lease payments to an external provider could significantly lower MTN’s operational expenses (OPEX). While the upfront acquisition cost is high, the long-term savings on “rent” for its own equipment would be substantial.
3. Consolidating the Nigerian Stronghold
Nigeria is the most critical market for both entities. By absorbing IHS, MTN would effectively consolidate its dominance in the country, controlling both the service layer (mobile/data) and the physical layer (towers).
The Competitive Edge
This deal isn’t just about saving money; it’s about leverage. Controlling the towers used by its competitors (who often co-locate on IHS sites) gives MTN a unique vantage point and a strengthened competitive position across its multinational footprint.
