Nigeria's regulator calls for domestic stake in MTN-IHS deal
The ruling underscores Abuja’s push to deepen local ownership of pillars of Nigeria’s digital economy.
Nigeria’s antitrust regulator has mandated MTN Group, Africa’s largest mobile operator, to divest a 30% stake in its Nigerian tower unit to local investors before the $6.2 billion acquisition of IHS Holdings can proceed. This directive highlights the Nigerian government’s intent to strengthen local ownership of crucial components of the country’s digital economy.
The acquisition of IHS, one of the largest tower operators in emerging markets with a substantial presence in Nigeria, is part of MTN’s plan to reinvigorate digital infrastructure and capitalize on earnings growth from tower assets. The regulator’s requirement introduces new uncertainty regarding the deal’s closure timeline. Local institutions, already grappling with foreign currency shortages and liquidity constraints, will need to raise capital to finance the potential sale, although MTN anticipates the transaction to be finalized by the end of the year.
The deal, projected to immediately enhance profits, has already received shareholder approval. This regulatory clearance emerged as MTN disclosed a near 25% increase in half-year core profit, or EBITDA, enabling it to initiate a nearly $380 million share buyback program.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
