MTN Group has secured regulatory approvals from Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC) for its proposed acquisition of IHS Holding Limited. The deal, which has also received IHS shareholder approval, requires MTN to acquire the remaining approximately 75% stake it does not already own for $2.2 billion ($8.50 per share in cash), valuing the tower operator at a $6.2 billion enterprise value.
However, to address local monopoly concerns regarding shared infrastructure used by competing networks, regulators have mandated that MTN sell a 30% stake in IHS Nigeria to local Nigerian investors on an arms-length commercial basis. This condition limits MTN's absolute control, creating a hybrid ownership model.
For investors, the transaction marks a major strategic shift, reversing a decade-old sale-and-leaseback trend. Reclaiming ownership of these towers is expected to reduce long-term leasing costs, increase operational control, and accelerate digital network deployments. It also highlights Nigeria’s position as MTN's primary growth engine; the group deployed R7.34 billion in network capital to Nigeria in H1 2026, about 2.8 times its South African network expenditure. Additionally, MTN is initiating a $375.5 million (R6 billion) share buyback program to retire up to 31 billion shares, which is expected to support metrics like Earnings Per Share (EPS).
Investors should monitor the transaction's closing, expected in the second half of 2026, alongside the pricing, timing, and execution of the mandatory 30% local equity sell-down, which remains subject to local market conditions.
.jpg)