MTN in talks to buy remaining IHS Holdings stake in $2.76 billion deal

MTN Group Africa’s biggest mobile operator, said on Thursday it is in advanced talks to buy the 75% stake it does not already own in IHS Holdings in a deal that could value the tower infrastructure firm at about $2.76 billion.

MTN, which leases IHS’ towers in Nigeria and South Africa, said any potential offer would be pitched at IHS’ last closing price on the New York Stock Exchange.

Shares in U.S.-listed IHS Holdings closed 5% lower at $8.23 on Wednesday, giving the dual-listed company a market value of roughly $2.76 billion, according to Reuters calculations. The company is also listed in Frankfurt.

MTN said no final agreement has been reached. If negotiations succeed, the deal would give it greater control over its tower infrastructure.

Should talks fail, the company said it would explore alternative options to unlock value from its stake while maintaining its capital allocation framework.

MTN and IHS Towers have a long-standing commercial relationship, with MTN serving as IHS’s largest customer across several African markets as well as a major shareholder.

REUTERS