MTN’s Bold Move: Reshaping Africa’s Telecom Tower Landscape
South African telecom giant MTN Group is set to acquire IHS Towers in a deal valued at approximately $6.2 billion, including the assumption of debt. This strategic maneuver, announced on February 19, 2026, signals a significant shift in the African telecommunications infrastructure market and could set a precedent for further consolidation.
The Deal Details: A Full Takeover
MTN intends to take IHS Towers private through a cash merger, offering $8.50 per share – a 9.7% premium over the 30-day volume-weighted average price as of February 4. The acquisition will be funded through $1.1 billion from IHS’s balance sheet, alongside MTN’s existing liquidity and debt facilities. MTN currently holds around 24.7% of IHS Towers and will acquire the remaining shares, pending shareholder and regulatory approvals.
Why Now? Internalizing Margins and Long-Term Value
Analysts suggest that reintegrating the tower infrastructure will allow MTN to capture margins currently paid to IHS. This move also unlocks potential revenue from third-party tenancy and provides greater cost visibility. The assets were originally developed by MTN, making the acquisition a return to core ownership. The deal is expected to enhance MTN’s earnings and cash flow in the long term.
Strategic Implications for Africa’s Digital Infrastructure
MTN President and CEO Ralph Mupita emphasized the acquisition’s strategic importance, stating it will reinforce the group’s financial position and strengthen its role in advancing digital infrastructure across the continent. Bringing the tower assets under direct ownership will also enhance MTN’s ability to support national development partnerships.
IHS’s Divestment and the Path to Completion
The proposed buyout follows IHS’s planned divestment of its Latin American operations, scheduled for February 11 and 17, 2026. Completion of the acquisition is contingent on shareholder endorsement, regulatory approvals, and customary closing conditions. Long-term investor Wendel has already pledged its support, securing approximately 40% of the two-thirds shareholder approval needed.
Consolidation Trends in Telecom Infrastructure
This acquisition is part of a broader trend of consolidation within the telecom infrastructure sector. Tower companies like IHS play a crucial role in enabling mobile network operators to expand their coverage and capacity without significant capital expenditure. However, as operators seek greater control over their infrastructure and cost structures, we may see more instances of them bringing these assets back in-house.
Did you know? MTN will control nearly 29,000 telecom towers across Africa following the completion of this deal, serving operators in five key markets.
Impact on Competition and Innovation
Even as the acquisition may reduce the number of independent tower companies in Africa, it could also spur innovation as MTN seeks to optimize its infrastructure and develop recent services. The increased control over its network could allow MTN to deploy new technologies, such as 5G, more efficiently.
What This Means for IHS Shareholders
IHS shareholders will receive $8.50 per share, representing the agreed-upon premium. IHS Chairman and CEO Sam Darwish highlighted the longstanding relationship between the two companies and the strategic importance of African digital infrastructure, assuring customers and partners of continued service quality and governance standards.
Frequently Asked Questions
- What is the total value of the MTN-IHS Towers deal? Approximately $6.2 billion, including the assumption of debt.
- When is the deal expected to close? Completion is contingent on approvals and closing conditions, with IHS’s Latin American divestment scheduled for February 11 and 17, 2026.
- Will MTN issue new equity to finance the acquisition? No, MTN indicated that no new equity issuance will be required.
- What is Wendel’s role in the deal? Wendel, a long-term investor, has signaled support for the deal and will vote in favor, securing a significant portion of the required shareholder approval.
Pro Tip: Keep an eye on regulatory approvals in key African jurisdictions, as these will be critical in determining the final outcome of the acquisition.
Explore more insights into the African telecommunications market and the evolving role of tower infrastructure. Share your thoughts on this acquisition in the comments below!
