MTN Group is seeking Nigerian investors to acquire a 30% stake in IHS Nigeria following regulatory approval for its proposed acquisition of IHS Towers.
The proposed stake sale could be worth between $900 million and $1.1 billion, although no final transaction value has been agreed. People familiar with the discussions told Bloomberg that MTN is currently approaching potential Nigerian buyers.
The development follows the conditional approval granted by Nigeria’s competition regulator for MTN’s proposed acquisition of IHS Towers. As part of the conditions attached to the approval, MTN is required to sell part of its interest in the Nigerian tower business to local investors.
The proposed sell-down is therefore not simply a voluntary decision by MTN but a regulatory requirement linked to the broader IHS Towers transaction.
For MTN, the deal could provide both a way to meet the regulatory conditions and a significant source of funds.
MTN Group CEO Ralph Mupita previously indicated that proceeds from any stake sale would be used to reduce debt associated with the IHS transaction. The company also intends to conduct the sale at a market-based valuation.
However, the reported $900 million to $1.1 billion range should not be regarded as a confirmed transaction value. Discussions remain ongoing, while the people familiar with the matter spoke anonymously because the details have not been made public.
Why MTN Is Selling 30% of IHS Nigeria
The proposed sale is part of MTN’s wider strategy surrounding its planned acquisition of IHS Towers.
MTN has been working towards acquiring the shares in IHS Towers that it does not already own. The transaction would give the telecommunications group greater control of a company operating approximately 29,000 towers across several African markets.
Nigeria is particularly significant to IHS Towers as its largest market, with the company operating roughly 18,000 towers across the country. The Nigerian business is therefore a major part of IHS Towers’ overall operations.
The regulatory condition creates an unusual structure.
While MTN is seeking greater ownership of IHS Towers globally, it is preparing to sell a substantial minority stake in its Nigerian operation. The arrangement would allow MTN to proceed with its broader acquisition while ensuring that Nigerian investors retain a meaningful interest in the country’s telecommunications infrastructure.
Nigeria’s competition authorities made the local sell-down one of the conditions for approving the transaction.
The requirement could also increase domestic participation in an infrastructure business that plays a critical role in Nigeria’s growing digital economy.
For MTN, selling 30% of IHS Nigeria could address two important issues simultaneously.
First, the transaction would help the company meet the regulatory conditions attached to its acquisition of IHS Towers. Second, the proceeds could help reduce some of the debt associated with completing the transaction.
Potential proceeds of up to $1.1 billion would therefore be significant as MTN manages the financial implications of increasing its ownership of IHS Towers.
The proposed transaction would also allow MTN to retain exposure to the Nigerian tower business rather than exit it completely. The company would continue to hold a majority interest while bringing Nigerian investors into the ownership structure.
For Nigerian investors, the proposed sale could provide an opportunity to gain direct exposure to one of the country's most important telecommunications infrastructure businesses.
IHS Nigeria owns and operates thousands of towers that support mobile network services across the country. The infrastructure is essential to the delivery of voice and data services, providing the physical network on which telecom operators depend.
The importance of telecommunications infrastructure has grown alongside smartphone adoption, mobile internet usage and increasing demand for digital services.
As Nigerians consume more data, telecom operators require reliable infrastructure to expand network capacity and improve coverage. Tower companies such as IHS play a crucial role by providing infrastructure that network operators can share.
An investor acquiring a 30% stake in IHS Nigeria would therefore gain exposure to more than a conventional property or infrastructure business. The investment would provide an interest in a critical component of Nigeria’s digital connectivity ecosystem.
The proposed transaction could also become one of the more significant opportunities for Nigerian capital to participate directly in telecommunications infrastructure.
The proposed 30% stake sale will depend on MTN identifying suitable Nigerian investors and reaching agreement on valuation and other transaction terms.
Although the reported $900 million to $1.1 billion range provides an indication of the potential scale of the transaction, it does not represent a final sale price.
The outcome will depend on ongoing discussions between MTN and prospective Nigerian investors, as well as the final structure and valuation of the stake.
For MTN, however, successfully completing the sale would represent an important step towards meeting the regulatory requirements for its IHS Towers acquisition while potentially strengthening its balance sheet through debt reduction.
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