Africa’s MTN Group to Acquire IHS Holding for $6.2 Billion in Cash
•February 17, 2026
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Why It Matters
The merger creates the continent’s largest tower platform, sharpening MTN’s competitive edge and offering investors a more diversified, cash‑rich telecom infrastructure asset.
Key Takeaways
- •$6.2B cash deal values IHS at $8.50 per share.
- •MTN finances purchase with $2.2B cash and debt rollover.
- •Transaction represents 6.99× IHS EBITDA, modest premium.
- •Acquisition expands MTN’s tower footprint across Africa, Latin America.
- •Closing hinges on sale of MTN’s Latin American assets.
Pulse Analysis
The tower‑sharing market in emerging economies has become a strategic battleground as operators seek cost efficiencies and rapid network rollout. By absorbing IHS, MTN not only consolidates its existing 24% stake but also gains control over a network spanning more than 30,000 sites across Africa and Latin America. This scale advantage enables the group to negotiate better terms with mobile carriers, leverage shared fiber backhaul, and accelerate the rollout of 5G services in regions where standalone investments remain prohibitive.
Financially, the $6.2 billion price tag translates to 6.99 times IHS’s EBITDA, reflecting a modest premium that balances shareholder value with growth potential. The structure—half funded by MTN’s cash reserves and half by IHS’s balance sheet—limits immediate leverage while preserving liquidity. The requirement for $355 million cash at closing ties the deal’s success to the divestiture of MTN’s Latin American tower and fiber assets, a move that could further streamline the combined portfolio and unlock additional cash flow.
Industry observers see the transaction as a catalyst for deeper consolidation in the African telecom infrastructure space. A unified tower platform under MTN’s banner can offer bundled services, such as edge computing and private network solutions, to enterprise customers seeking low‑latency connectivity. Moreover, the enlarged asset base strengthens MTN’s bargaining position with global equipment vendors and may attract new financing options tied to sustainable infrastructure initiatives. As the continent’s data demand surges, the combined entity is well‑positioned to capture market share and drive long‑term earnings growth.
Africa’s MTN Group to Acquire IHS Holding for $6.2 Billion in Cash
IHS Holding Limited (IHS) entered a merger agreement on February 17, 2026, to be acquired by MTN Group Limited in a deal valued at $6.2 billion.
Deal Structure:
IHS Towers shareholders will receive $8.50 per ordinary share in cash, representing a premium of 2.53% from the stock’s last close.
Company Profile:
IHS Towers is an independent owner, operator, and developer of shared telecommunications infrastructure in emerging markets, providing towers, fiber connectivity, and related services to mobile operators, ISPs, broadcasters, and corporations across Africa and Latin America.
MTN Group is a South African‑based multinational telecom operator that provides mobile voice, data, broadband, digital, and fintech services across Africa and the Middle East.
Deal Details and Timeline:
Earlier this month, Africa’s MTN Group announced that it was at an advanced stage of discussions with IHS to acquire the 75% shares in the company that it does not already own. The stock was trading at $8.23 when MTN revealed the deal talks.
MTN Group has agreed to vote all of its IHS Towers shares in favor of the transaction, and long-term IHS shareholder Wendel has also committed to support the vote. Together, these two shareholders represent over 40% of shareholder support for the proposed transaction.
The deal is expected to close in 2026.
The transaction will be financed using MTN’s existing 24% stake in IHS Towers, about $1.1 billion in cash from MTN, about $1.1 billion from IHS Towers’ own balance sheet, and by rolling over only existing IHS Towers debt.
The company must also have at least $355 million in cash at closing. Meeting these requirements depends in part on the successful sale of MTN’s Latin American tower and fiber operations.
IHS was advised financially by J.P. Morgan and legally by Latham & Watkins and Walkers. MTN received financial advice from BofA Securities and Citigroup Global Markets, with legal guidance from Cravath, Swaine & Moore.
MTN’s acquisition price is equivalent to 6.99 times the EBITDA of IHS.
Deal Metrics:
For a more comprehensive analysis of this M&A transaction, kindly visit the Deal Metrics page at:
Deal Metrics for the acquisition of IHS Holding Limited (IHS) by MTN Group Limited
The comprehensive Deal Metrics page for each merger or acquisition includes:
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A spread history chart of the merger from the announcement to the completion or failure.
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Key events as the merger progresses through the expiration of the HSR period, regulatory approvals, shareholder votes, etc.
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News and SEC filings related to the merger.
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A timeline of deal updates.
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And much more.
Disclaimer: We urge you to perform your due diligence before purchasing or selling any securities mentioned in this article. We cannot guarantee the completeness or accuracy of the information provided in this article.
Editor’s Note: Baranjot Kaur contributed to this article
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