MTN Group is moving to take telecom tower operator IHS Holding private, with IHS Holding’s board backing MTN Group’s offer to buy out other shareholders. This strategic move, valued at approximately $6.2 billion on an enterprise-value basis, represents one of Africa’s largest digital infrastructure deals and a significant shift in African telecom strategy.

The offer, made through MTN subsidiaries Mobile Telephone Networks Netherlands B.V. and Sub-Merger Co., proposes $8.50 per share in cash to IHS shareholders. If approved, IHS will become a wholly owned MTN subsidiary and subsequently delist from the New York Stock Exchange (NYSE). This transaction signifies a strategic pivot for African telecom operators, moving from an asset-light outsourcing model back towards greater control over critical network infrastructure.

For years, IHS has operated as an independent tower company, providing services to telecom operators across Africa, the Middle East, and Latin America. MTN, a long-standing customer and major shareholder of IHS, has heavily relied on IHS sites for its network expansion in several African markets. However, the African telecom landscape is evolving, with operators increasingly seeking to control their network infrastructure amidst growing data demand, escalating power costs, and currency pressures.

MTN's decision to acquire IHS aims to reduce its dependency on third-party tower providers. This increased control over infrastructure is deemed crucial for the rollout and management of advanced services, including 4G, 5G, and fiber-linked networks. By integrating IHS, MTN anticipates better aligning tower investments with its overall network development plans and avoiding the public-market pressures that often affect infrastructure businesses.

The deal requires shareholder approval at an extraordinary general meeting in London, needing at least two-thirds of votes cast to support the transaction. MTN has already secured considerable support for the deal, including its own IHS stake and backing from Oranje-Nassau Développement, an entity linked to Wendel. Together, these blocs represent over 40% of the total voting power, indicating strong foundational support for the acquisition.

While the $8.50 per share offer provides cash liquidity to IHS shareholders, particularly after a listing that struggled to fully reflect the company’s strategic value, MTN faces potential execution risks. The acquisition means MTN will integrate a substantial infrastructure platform that comes with existing debt, regulatory exposure across multiple markets, and operational complexities inherent in a large-scale international business.