IHS Towers has confirmed that telecommunications giant MTN Group is in advanced discussions over a potential acquisition of the remaining shares in the global tower company, a move that could significantly reshape ownership of critical communications infrastructure across Africa and other emerging markets.
The development builds on long-running market speculation about whether MTN Group, which owns Nigeria’s largest mobile network operator, MTN Nigeria, would eventually consolidate its stake in IHS Towers following the tower company’s public listing on the New York Stock Exchange. MTN has remained both a major customer and a strategic shareholder in IHS after retaining a substantial equity interest in the company.
IHS Holding Limited disclosed in a statement seen by Technology Times that it is engaged in discussions with MTN Group Limited regarding a possible buyout of all shares that MTN does not already own. However, the tower company stressed that the talks remain preliminary and non-binding, cautioning that no transaction has been agreed and that there is no certainty a deal will be concluded.
“The approach is non-binding,” IHS said, noting that, “it has not been agreed and there is no certainty that a transaction will be agreed upon, or as to the final terms of any such agreement.”
The tower company added that it had taken note of a cautionary announcement issued by MTN Group Limited to the market regarding a potential acquisition of additional shares in IHS.
MTN echoed this caution in its own regulatory filing, confirming that it is at an advanced stage of discussions with IHS to acquire up to the 75% of the company it does not already own. The telecoms group noted that the potential offer price is expected to be around the last traded price of IHS shares on the New York Stock Exchange, while reiterating that no final agreement has been reached.
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