MTN Group Ltd. is seeking local investors to buy a 30 per cent stake in IHS Nigeria Plc. The deal could raise between $900 million and $1.1 billion, according to people familiar with the matter.
The proposed sale forms part of an agreement between MTN and Nigeria’s antitrust authorities. The agreement requires the telecoms giant to sell part of the tower business to local investors.
The people asked not to be identified because the details remain private.
MTN plans to use proceeds from the sale to reduce debt linked to IHS Nigeria. The company earlier this year agreed to buy the 75 per cent of IHS Nigeria that it did not already own.
“Proceeds from any sell-down would be used to pay down IHS-related debt,” MTN Chief Executive Officer Ralph Mupita said in an interview.
Mupita declined to provide financial details about the transaction.
“The deal would be done on a market-oriented valuation basis.”
IHS Nigeria represents the biggest asset of New York-listed IHS Holdings Ltd. The tower operator runs about 18,000 mobile phone towers in Nigeria, according to the people.
Across Africa, IHS manages about 29,000 towers. Its biggest operations include Nigeria and South Africa.
The planned sale comes as demand for telecom infrastructure grows across Africa. The continent has the world’s fastest-growing and youngest population. More people are also using smartphones to access digital services.
That growth is increasing the need for more telecom towers and stronger network coverage.
The African telecom towers market could grow by 19 per cent to $4.75 billion by 2031, according to Mordor Intelligence.
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