MTN Group Ltd. is seeking buyers for a 30% stake in IHS Nigeria Plc., the local unit of IHS Holdings Ltd., with a potential valuation of up to $1.1 billion. The process is being conducted under an agreement with Nigeria's antitrust regulator, according to a person familiar with the matter cited by Bloomberg.
The stake sale follows MTN's earlier plan to acquire the remaining 75% of IHS Nigeria it does not already own, a move announced earlier this year. MTN Chief Executive Officer Ralph Mupita stated in an interview that proceeds from any sell-down would be used to pay down IHS-related debt and that the transaction would be executed on a market-oriented valuation basis.
IHS Nigeria operates approximately 18,000 mobile-phone towers across Nigeria, providing critical infrastructure for the country's telecommunications sector. The sale process is designed to comply with regulatory requirements set by Nigeria's competition authorities, though specific financial terms and timelines have not been disclosed.
The stake is being marketed to local investors, with the valuation range between $900 million and $1.1 billion. MTN's decision to seek buyers for a minority stake reflects a strategic shift in its approach to managing its Nigerian tower assets while addressing debt obligations tied to IHS Nigeria.
