Coast clears for MTN Group’s $6.2b IHS Towers’ acquisition
MTN Group has taken a significant step towards the fulfilment of its IHS Towers acquisition, a deal that resulted in a pro forma profit of R2.011 billion for its 2025 financial year. The South...
MTN Group has taken a significant step towards the fulfilment of its IHS Towers acquisition, a deal that resulted in a pro forma profit of R2.011 billion for its 2025 financial year.
The South African telecom giant required approval from IHS Towers’ shareholders to proceed with the transaction.
MTN Group CEO Ralph Mupita previously said the proposed transaction represented a pivotal step in further strengthening the group’s strategic and financial position.
It also meant that MTN would be able to buy back the cellular towers it had sold to IHS, along with the rest of the company’s infrastructure.
“This transaction is a pivotal step in further strengthening MTN Group’s strategic and financial position for a future where digital infrastructure will become more essential to Africa’s growth,” Mupita said in May.
When MTN first announced the deal, it said that for IHS shareholders, the proposed acquisition offers an attractive opportunity to crystallise value.
It said the funding for the proposed transaction of the remaining shares MTN does not already own, for a consideration of some $2.2 billion (R35.4 billion), will be through a combination of cash and debt.
MTN will use approximately $1.1 billion (R17.7 billion) of cash on IHS’s balance sheet, along with available liquidity and debt, to finance the purchase.
Two days ago, MTN Group announced that it has cleared one of the final hurdles in its acquisition of IHS Towers as the IHS shareholders approved the transaction.
“The approval of the Transaction by IHS shareholders fulfils the precedent to the transaction,” MTN said.
A shareholder statement from IHS Holding Limited said that the company held an extraordinary general meeting of shareholders on 4 August 2026.
This meeting was to consider certain proposals related to the agreement and merger plan together with MTN Group.
Two proposals were brought before IHS shareholders: approval of the merger agreement and a safety net to be put in place if the first proposal did not receive enough votes.
However, since IHS shareholders approved the first proposal, the second proposal was not required and was not called during the meeting.
The merger with MTN Group was passed by shareholders on the first try, and the acquisition can now proceed to the next stage.
“The approval by IHS shareholders is an important step toward completion of the transaction,” said Mupita on Wednesday.
“Within our Ambition 2030, the three-platform strategy, towers are a critical value-creation driver that will strengthen MTN’s strategic and financial position for the future.”
He said this was especially true in a world where digital infrastructure and AI are becoming increasingly essential to Africa’s growth and development.
