MTN Seeks Local Investors for 30% Stake in IHS Nigeria in Deal Worth Up to $1.1bn

MTN Group is seeking local investors to acquire a 30 per cent stake in IHS Nigeria in a potential transaction valued at between $900 million and $1.1 billion, according to people familiar with the matter.

The proposed sale is part of an agreement with Nigeria’s competition regulator requiring the telecommunications group to divest part of its interest in the tower infrastructure business to local entities.

IHS Nigeria, which operates about 18,000 mobile phone towers, is the largest asset of New York-listed IHS Holdings.

MTN Group Chief Executive Officer, Ralph Mupita, said proceeds from any stake sale would be used to reduce IHS-related debt.

“Proceeds from any sell-down would be used to pay down IHS-related debt,” Mupita said, adding that the transaction would be conducted on a market-oriented valuation basis.

He, however, declined to provide further financial details of the proposed deal.

Earlier this year, MTN said it planned to acquire the 75 per cent stake in the Nigerian tower company that it did not already own.

The wider IHS business manages about 29,000 towers across Africa, with its largest operations located in Nigeria and South Africa.

The potential transaction comes as demand for telecommunications infrastructure continues to rise across Africa, driven by rapid population growth, increasing smartphone adoption and expanding access to digital services.

Mordor Intelligence estimates that Africa’s telecom towers market could grow by 19 per cent to reach $4.75 billion by 2031.

The planned divestment could provide an opportunity for Nigerian investors to participate more directly in the country’s critical telecommunications infrastructure sector while supporting MTN’s efforts to manage debt associated with its IHS investment.