Susan Abayomi
MTN Group is seeking Nigerian investors to acquire up to a 30 per cent stake in IHS Nigeria, in a transaction that could be valued between $900 million and $1.1 billion.
The proposed sale follows a condition imposed by Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) as part of its conditional approval of MTN’s planned acquisition of IHS Holding. The regulator requires MTN to sell down up to 30 per cent of the Nigerian business to local investors at market-based prices over time.
MTN Group Chief Executive Officer, Ralph Mupita, said proceeds from the proposed sell-down would be used to reduce debt associated with the IHS transaction. He added that the deal would be based on a market-oriented valuation, while declining to disclose further financial details.
IHS Nigeria operates about 18,000 telecommunications towers, making Nigeria its largest market. The wider IHS business operates roughly 29,000 towers across Africa and provides critical infrastructure used by major telecommunications operators.
MTN announced earlier this year that it had agreed to acquire the approximately 75 per cent of IHS Holding that it did not already own, in a transaction valuing the company at about $6.2 billion. The acquisition is expected to strengthen MTN’s control over key telecommunications infrastructure across its markets.
The proposed local sell-down could give Nigerian investors an opportunity to take ownership in a major telecommunications infrastructure business while also helping MTN meet regulatory requirements and reduce debt linked to the acquisition.
The transaction is expected to form part of MTN’s broader strategy to consolidate its infrastructure position while maintaining regulatory compliance in Nigeria.
