MTN Nigeria (MTNN) shares surged to an all-time high of N780 per share on Thursday, as investors cheered the group’s $6.2 billion acquisition of IHS Towers. The deal, which gives MTN full control over nearly 29,000 tower assets across Africa, marks a strategic pivot from the “asset-light” model of leasing infrastructure to full ownership.
By becoming a landlord rather than a tenant, MTN is set to capture greater margins, reduce dollar-linked lease volatility, and gain direct control over the infrastructure essential for its 5G rollout. The acquisition has significantly boosted investor confidence, pushing MTN’s market capitalization past N16 trillion (N16.376 trillion). With 20.995 billion shares outstanding, the stock closed 4 percent higher on Thursday, rising N30 from a day-open price of N750.
IHS Towers, one of the world’s largest tower companies, serves multiple mobile network operators across five key MTN markets. Experts say the acquisition will strengthen MTN’s long-term cash flow and operational flexibility. Kayode Adegoye, COO at Arthur Stevens Asset Management Limited, told BusinessDay, “The valuation would go up. The potential of their cash flow has significantly increased.”
Charles Egbunonwo, MD of The Brook Securities Limited, highlighted that the move will enable faster site rollouts and 5G expansion while eliminating lease costs. “In the long term, MTN’s earnings should improve, though short-term concerns around financing the deal through leverage may arise,” he added.
Employees of IHS Towers are set to receive compensation and core benefits for up to 12 months following the $2.2 billion merger portion of the transaction, ensuring continuity and stability during integration.
Former UBA executive Abiola Rasaq noted that the deal reinforces MTN’s leadership in Africa’s telecom space, while also casting doubt on the sustainability of infrastructure-sharing models. “MTN’s buyout demonstrates that owning towers can be more strategic than leasing, especially as the company accounts for about 65 percent of IHS revenue,” he said.
Sola Oni, Fellow of the Chartered Institute of Stockbrokers, emphasized the broader significance of the acquisition. “This move signals a shift in African telecom strategy, prioritizing ownership of critical digital infrastructure over leasing. It could reshape network development, attract global investment, and give MTN a stronger foothold in the continent’s growing digital economy,” he said.
The deal positions MTN to dominate Africa’s telecom infrastructure landscape while raising important questions for competitors like Airtel and Orange, who rely heavily on IHS towers in key markets. Analysts predict that MTN’s acquisition could trigger greater consolidation in Africa’s tower market, making infrastructure ownership a core competitive advantage.
