IHS Towers has successfully finalized a significant acquisition, completing the purchase of 5,701 mobile tower units from MTN Group for $412 million, equivalent to ZAR6.4 billion. This strategic transaction marks a pivotal moment for IHS Towers, positioning it as South Africa’s largest independent tower operator. The deal, which involved stringent regulatory approvals and conditions, also stipulates that IHS Towers will provide comprehensive power management services to approximately 13,000 MTN South Africa locations, ensuring robust network support across the nation.

The acquisition represents a crucial step in MTN Group's broader strategy to reduce debt and streamline its diverse business portfolio spanning Africa and the Middle East. MTN's President and CEO, Ralph Mupita, confirmed the completion of all regulatory requirements, stating, "We are pleased to have IHS bring global capabilities to our South Africa network." This follows MTN's earlier moves in January 2022, when it divested minority stakes in its tower joint ventures in Ghana and Uganda, raising approximately $523 million.

For IHS Towers, this acquisition is a major milestone in its global expansion and growth trajectory. Founded in 2001 by Lebanese-Nigerian Issam Darwish and William Saad, IHS Holdings is a leading provider of telecom tower infrastructure, leasing tower spaces to mobile operators under 10-15 year contracts. Before this deal, the company owned over 715 towers in Nigeria and 23,000 across Africa, establishing itself as the world's third-largest mobile infrastructure provider. Sam Darwish, CEO of IHS Towers, expressed his enthusiasm, highlighting the company’s deep operational excellence and engineering expertise. He stated that the expansion into South Africa, a key African anchor for IHS, would facilitate mobile connectivity, meet increasing data demands, and expedite new technology rollouts.

A notable condition of the deal, mandated by the Competition Commission, ensured a significant local empowerment component. While IHS Towers will own 70% of the newly acquired South African tower business, the remaining 30% will be held by a consortium of investors participating in the government’s Broad-based Black Economic Empowerment programme. This crucial requirement for 30% black ownership is to be achieved within 24 months, aligning with South Africa's economic transformation objectives.

This transaction underscores IHS Towers' continuous global expansion efforts. The company has been actively growing its footprint, including the December 2019 acquisition of Cell Site Solutions (CSS), an infrastructure provider in Brazil, as part of its strategy to expand into the Middle East, Asia, and South America. With this latest acquisition, IHS Towers now manages approximately 39,000 towers globally and has a presence in 11 emerging markets, comprising seven in Africa and four across Latin America and the Middle East. The company's extensive telecom infrastructure is vital for enabling millions across these regions to access phone calls and internet services.