The Federal government has said it will undertake a comprehensive review of MTN Group’s $6.2 billion acquisition of IHS Holding Limited.
The Minister of Communications, Innovation and Digital Economy, ‘Bosun Tijani, disclosed this in a statement on Tuesday.
He noted that the assessment would be conducted in collaboration with relevant regulatory authorities to determine its impact on the telecommunications sector.
“Given the strategic importance of telecommunications infrastructure to national security, economic growth, financial services, innovation, and social inclusion, and to ensure strategic actions by private sector operators are in line with the market development agenda under the Renewed Hope policy directions of the President, the Ministry will undertake a thorough assessment of this development in collaboration with the relevant regulatory authorities to review its impact on the sector.
“Our objective is clear: to ensure that any market consolidation or structural changes protect consumers, safeguard investments, and preserve the long-term sustainability of the sector.
“We remain committed to maintaining a stable, transparent, and forward-looking policy environment that keeps Nigeria’s telecommunications industry on a strong and sustainable path, in alignment with our broader vision of building a robust digital economy,” Tijani added.
MTN’s $6.2bn all-cash deal
In a statement on Tuesday, IHS disclosed that the MTN Group, Africa’s largest mobile operator, has agreed to acquire IHS Holding Limited in an all-cash transaction valued at $6.2 billion.
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It stated that shareholders will receive $8.50 per share, representing a 239 per cent premium over the company’s share price at the start of its strategic review in March 2024.
According to the statement, the IHS Board has unanimously approved the deal and resolved to recommend it to shareholders.
“MTN has agreed to vote all of its IHS shares in favour of the transaction, and long-term IHS Towers shareholder Wendel has also provided a letter of support to vote in favour of the transaction.
“With these two shareholders combined, more than 40 per cent shareholder support has been secured for this proposed transaction to conclude.
“Upon completion of the transaction, IHS Towers’ ordinary shares will no longer be publicly listed, and IHS Towers will become a wholly owned subsidiary of MTN,” it read.
The Chairman and Chief Executive Officer of IHS Towers, Sam Darwish, said the deal offers immediate value to shareholders.
“The proposed transaction deepens our long-standing partnership with MTN, as it combines Africa’s largest mobile network operator with one of its largest digital infrastructure platforms and underscores the strong connection between IHS Towers and the African continent,’ Darwish said.
Deal structure and timeline
The transaction is expected to close in 2026, subject to shareholder and regulatory approvals.
Funding will include the rollover of MTN’s existing approximately 24 per cent stake in IHS, about $1.1 billion in cash from MTN, approximately $1.1 billion in cash from IHS’ balance sheet, and the rollover of no more than the existing IHS debt.
The Group President and CEO of MTN, Ralph Mupita, described the deal as strategic.
‘This proposed transaction is a pivotal step in further strengthening MTN Group’s strategic and financial position for a future where digital infrastructure will become ever more essential to Africa’s growth and development.
“This transaction gives us a unique opportunity to buy back our towers and strengthen our ability to be partners for progress to the nation-states in which we operate.”
He added, “For IHS customers and partners across the continent, we commit to continuing high standards of service and the right governance of what is the largest standalone and integrated tower company in Africa, enabled by the excellent people within IHS.”
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
