IHS Towers MTN Buyout Moves Closer
IHS Holding Limited has moved closer to becoming a private company after its board approved a takeover proposal from MTN Group.
The telecom infrastructure company confirmed the development in a filing submitted to the U.S. Securities and Exchange Commission.
Shareholders will vote on the proposed deal during an extraordinary general meeting expected to hold in London later this year.
MTN plans to acquire all outstanding shares of IHS Holding for $8.50 per share in cash through its subsidiaries Mobile Telephone Networks (Netherlands) B.V. and Sub-Merger Co.
If shareholders approve the transaction, MTN will take full ownership of IHS Towers. The company will also leave the New York Stock Exchange.
IHS Board Supports the Acquisition
The IHS board said the proposed transaction serves the best interests of shareholders.
Directors also stated that the $8.50 offer represents fair value for investors.
“The board unanimously authorised and approved the execution, delivery and performance of the merger agreement,” the filing stated.
The deal marks a major shift for IHS Towers. For years, the company operated as an independent telecom infrastructure provider across Africa, the Middle East, and Latin America.
MTN already ranks among IHS Towers’ biggest customers and shareholders. Both companies have maintained close business ties for years.
Telecom Companies Increase Infrastructure Control
Telecom operators across Africa are increasingly taking direct control of critical infrastructure assets.
Rising energy costs, currency pressure, and growing demand for mobile internet continue to reshape the industry.
In February 2024, Airtel Africa launched Airtel Africa Fibre to manage its terrestrial fibre network.
A year later, Safaricom started managing power systems at telecom sites directly instead of relying fully on tower management firms.
Industry analysts believe operators now view infrastructure as a strategic business asset. Many telecom firms want stronger control over network expansion, energy systems, and operating costs.
Major Investors Back the Deal
The IHS Towers MTN buyout already has support from key shareholders.
MTN subsidiary Holdings agreed to vote its 85.2 million shares in favour of the transaction. Those shares account for about 21.1% of the company’s voting power.
Another major investor, Oranje-Nassau Développement, also plans to support the deal. The investment company is linked to French investment group Wendel.
Wendel controls roughly 63 million shares, representing nearly 19.6% of voting rights.
Combined, both shareholder groups control more than 40% of the company’s voting power ahead of the meeting.
The merger still requires approval from at least two-thirds of votes cast during the shareholder meeting.
Employee Shares and Delisting Plans
The filing also explained how the company plans to handle employee stock awards.
Restricted stock units and performance stock units under the company’s 2021 incentive plan will convert into cash payments using the agreed $8.50 share price.
Once the merger closes, the company will cancel all outstanding ordinary shares and replace them with cash payments.
The exception applies to shares already owned by MTN affiliates and shareholders exercising dissent rights under Cayman Islands law.
End of IHS Towers’ NYSE Listing
The proposed acquisition could end IHS Towers’ short journey as a publicly traded company.
IHS Towers joined the New York Stock Exchange in 2021 during a period of strong investor interest in digital infrastructure companies.
The company is still preparing its final shareholder circular and proxy documents ahead of the extraordinary general meeting.
