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MTN Explores Full Ownership of IHS Towers
MTN Group, Africa’s largest mobile network operator, is in advanced discussions to acquire the remaining 75 per cent stake in IHS Towers that it does not already own, a transaction that could value the telecom infrastructure firm at approximately $2.76 billion.
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According to a Reuters report, the talks centre on MTN increasing its ownership in IHS Holdings, one of the world’s largest independent owners, operators, and developers of shared communications infrastructure.
Background to MTN–IHS Relationship
MTN currently holds a 25 per cent stake in IHS Towers, stemming from a landmark 2014 tower sale-and-leaseback agreement. Under that deal, MTN sold the majority of its tower assets across several African markets to IHS as part of a broader strategy to unlock capital and focus on core network services.
Since then, MTN has remained IHS Towers’ largest customer across multiple African countries, underpinning a long-standing commercial relationship between the two companies.
Strategic Rationale: Control, Efficiency, and Network Expansion
If completed, the acquisition would mark a strategic shift for MTN, giving it greater control over critical infrastructure required to support rising data demand across its markets.
Commenting previously on MTN’s long-term infrastructure strategy, Group President and CEO Ralph Mupita said in 2024:
“The renewal of the various contracts across our markets into the next decade puts MTN operations on a more sustainable footing. We remain focused on ensuring our networks are well invested, have high availability, and have the headroom to meet the growing and structural demand for data going into the future.”
Greater ownership of tower infrastructure could help MTN reduce reliance on third-party providers, lower operating costs, and enhance network performance and reliability.
Valuation and Deal Status
Any potential offer would be aligned with IHS Towers’ prevailing market valuation. IHS Holdings, which is listed on both the New York Stock Exchange and Frankfurt Stock Exchange, closed lower in recent trading, giving the company a market capitalisation of around $2.76 billion.
MTN emphasised that discussions are ongoing, and no binding agreement has been reached. Should talks fail, the company said it would explore alternative options to unlock value from its existing shareholding, in line with its capital allocation framework.
Nigeria: The Backbone of IHS Towers’ Business
Nigeria remains the single most important market for IHS Towers, accounting for nearly 59 per cent of its global revenue as of late 2025. The company holds a dominant position in Nigeria’s telecom infrastructure landscape.
Key Competitive Strengths in Nigeria
- Market Leadership: IHS controls over 60% of Nigeria’s collocated telecom towers, operating between 16,000 and 19,000 sites, depending on reporting metrics.
- Scale Advantage: IHS operates more than twice the number of towers of its closest competitor, ATC Nigeria, which managed around 8,270 towers in 2023–2024.
- Vertical Integration: Beyond towers, IHS has deployed approximately 10,000 kilometres of fibre optic cable in Nigeria and operates data centres in Lagos and Abuja.
Emerging Challenges and Competitive Pressures
Despite its dominant position, IHS Towers faces evolving market dynamics. Revenue concentration remains a key risk, with MTN and Airtel accounting for a significant share of its income. In 2025, some major clients began renegotiating contracts, creating openings for competitors such as ATC Nigeria to take over selected sites.
These developments underscore why MTN may see strategic value in deepening its ownership of IHS Towers as competition intensifies.
Outlook
If finalised, the deal could reshape Africa’s telecom infrastructure landscape, reinforcing MTN’s control over assets critical to future network expansion while redefining the relationship between Africa’s largest mobile operator and one of the world’s biggest tower companies.
