Why MTN’s buyback of IHS Towers makes economic sense

MTN's decision to spend top dollars to buyback the remaining 75% shares of IHS Towers in an all-cash deal makes perfect sense.

Yesterday, February 17th, 2026, MTN Group made a significant announcement about plans to fully acquire IHS Towers in a deal valued at $6.2 billion.

MTN already owns 24.7% of IHS Towers, but wants to buy back the remaining 75% for $2.2 billion in an all-cash deal— MTN Group will source $1.1 billion from available liquidity and debt, while another $1.1 billion in cash will come from IHS’s balance sheet.

MTN Group President and CEO Ralph Mupita views the acquisition as 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.”

Meanwhile, for IHS Chairman and CEO, Sam Dawish, the proposed acquisition “provides certainty and immediate returns for shareholders and deepens the long-standing partnership with MTN.”   

For context, MTN previously owned the towers but sold thousands to IHS, keeping ownership of around 25%. The move was necessary at the time as part of a cost-cutting strategy and shift focus to its core business of delivering connectivity and digital services, network expansion, among others.

However, MTN has now gone full cycle, and subject to regulatory approvals, the telecommunications giant expects the full takeover deal to be sealed later in 2026.

How important are the telecoms towers?

The towers are a critical infrastructure in telecommunications network. The towers house facilities like the mast, antennas, cooling systems, surveilance cameras, and the Base Transceiver Station (BTS) that processes signals and connects to either fibre or microwave link, allowing calls or data to travel seamlessly across long distances.

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Sending and receiving of radio signals between a user’s mobile device and the operator’s core network is also facilitaed via the BTS, a component of the base station.

When a phone call is made, it lands at the nearest base station, where...