MTN Seeks Nigerian Investors For 30% Stake In IHS Nigeria’s $1.1bn Deal

MTN Group is seeking Nigerian investors to acquire a 30% stake in IHS Nigeria, a move tied to regulatory conditions for its proposed acquisition of IHS Holding Limited. 

The proposed sell-down is expected to raise between *$900 million and $1.1 billion*, according to people familiar with the matter cited by Bloomberg.

The development comes three days after MTN Group secured conditional approval from Nigeria’s Federal Competition and Consumer Protection Commission, FCCPC, for its proposed acquisition of IHS Holding.

As part of the conditions, the FCCPC directed MTN to sell down up to 30% of the Nigerian component of the IHS business to local investors at market prices over time.

MTN Group Chief Executive Officer, Ralph Mupita, confirmed that proceeds from the stake sale would be used to reduce debt linked to the IHS transaction.

“Proceeds from any sell-down would be used to pay down IHS-related debt,” Mupita said in an interview. “The deal would be done on market-oriented valuation basis.” He declined to provide further details on the potential value of the stake.

IHS operates about 29,000 telecom towers across Africa, with Nigeria and South Africa as its largest markets.

In Nigeria, IHS operates about 18,000 mobile-phone towers, making it one of the largest independent tower operators in the country. Across Africa, IHS holds an estimated 41% share of the evaluated tower market, controlling approximately 16,500 of nearly 40,000 towers.

In February this year, MTN Group, Africa’s largest mobile network operator, entered advanced discussions to acquire the roughly 75% stake in IHS Holding Limited that it did not already own.

By early August, shareholders of IHS Holding Limited approved MTN’s proposed acquisition of the remaining shares, clearing a major milestone for the transaction.

Just three days ago, MTN announced it had secured the FCCPC’s conditional approval for the proposed $6.2 billion acquisition of IHS Holding Limited.

MTN and IHS have maintained a longstanding relationship in telecom infrastructure. Over the years, MTN has sold thousands of its telecom towers to IHS through sale-and-leaseback arrangements.

A landmark transaction took place in South Africa in 2022, when MTN agreed to sell more than 5,700 sites to IHS Towers as part of the companies’ broader infrastructure partnership.

While consolidating its position in telecom infrastructure, MTN Group is also advancing its fintech ambitions.

The company said it is exploring banking licences in select markets as it considers expanding its lending business using its own balance sheet.