South African telecommunications group MTN Group Ltd. is seeking local investors to acquire a 30% stake in IHS Nigeria Plc., a unit of IHS Holdings Ltd., with the transaction valued at up to $1.1 billion.
The planned sale aligns with an agreement MTN reached with Nigeria’s antitrust regulator to address competition concerns. The proceeds will be used to repay debt associated with IHS, according to MTN Chief Executive Officer Ralph Mupita.
IHS Nigeria operates approximately 18,000 mobile phone towers, making it the largest asset within IHS Holdings Ltd., which is listed in New York. Earlier this year, MTN announced it would acquire a 75% stake in the tower company, leaving the remaining portion to be divested as part of the current process.
The valuation of the 30% stake is estimated between $900 million and $1.1 billion, with the transaction expected to be priced based on market-driven assessments. MTN did not disclose further financial details regarding the potential sale.
