MTN Group is seeking Nigerian investors to acquire a 30 per cent stake in IHS Nigeria as it moves to satisfy a regulatory condition attached to its proposed acquisition of IHS Towers.
Bloomberg reported that the proposed sale could raise between $900 million and $1.1 billion, citing people familiar with the matter who asked not to be identified because the details are private.
The development follows MTN’s proposed acquisition of the remaining stake in IHS Towers. IHS Towers announced in February that it had entered into an agreement to be acquired by MTN in an all-cash transaction valuing the company at approximately $6.2 billion.
MTN already holds a stake in IHS Towers and agreed to acquire the remaining 75 per cent under the proposed transaction.
The Nigerian competition regulator subsequently attached conditions to the deal, including a requirement for MTN to sell part of its interest in the Nigerian tower business to local investors.
Bloomberg reported that MTN is now seeking domestic investors for the 30 per cent stake in IHS Nigeria. The people familiar with the matter said the potential transaction could value the stake at between $900 million and $1.1 billion.
MTN Chief Executive Officer Ralph Mupita told Bloomberg that proceeds from any sell-down would be used to reduce IHS-related debt and that the transaction would be conducted on a market-oriented valuation basis.
IHS Nigeria operates about 18,000 mobile-phone towers, making it a major provider of telecommunications infrastructure in the country, according to the Bloomberg report.
For Nigerian investors, the proposed transaction could create an opportunity to take ownership in a major telecommunications infrastructure business at a time when demand for mobile connectivity and data services continues to expand.
However, the proposed stake sale is not yet a completed transaction, and the final value, investor structure and terms remain subject to negotiations and applicable regulatory processes.
MTN’s broader acquisition of IHS Towers remains subject to the conditions attached by regulators in the relevant jurisdictions.
