MTN Group says it is in advanced talks to buy the 75 stake in IHS Holdings it does not already own, a move that could tighten the telecom operators control over critical network infrastructure across Africa and beyond. The company said discussions are ongoing and stressed that no deal is guaranteed.
MTN, based in South Africa, said any offer would be made at a price close to IHS most recent market value. IHS shares have fallen sharply over the past year, reflecting investor concerns about debt, interest rates and the cost of operating towers in volatile markets where power and security expenses can be high.
If the talks lead to an agreement, the transaction would effectively bring IHS closer under MTNs umbrella after years of the two companies working side by side. IHS is one of the worlds largest independent owners of telecom towers, and it earns much of its revenue by leasing space on those sites to mobile operators, including MTN.
