Nigeria has cleared MTN Group’s proposed $2.2 billion purchase of IHS Towers, subject to a requirement designed to limit the telecom operator’s control of the country’s tower infrastructure market.
Key takeaways
- MTN must gradually dispose of as much as 30% of its interest in IHS Towers’ Nigerian business.
- The stake reduction must take place at market prices and is intended to protect rivals including Airtel and T2 Mobile.
- IHS Towers supports the rollout of mobile broadband, 5G and other digital services across African markets.
- MTN has authorised a R6 billion ($375 million) share repurchase following strong first-half performance.
- Constant-currency EBITDA advanced 24.4% to R56 billion, while the subscriber base reached 317.7 million.
Nigeria attaches competition conditions
The Federal Competition and Consumer Protection Commission, Nigeria’s competition watchdog, authorised the transaction but imposed a remedy on MTN. The South African telecommunications group will be required to sell down up to 30% of its holding in the Nigerian arm of IHS Towers over time.
The disposals must be completed at prevailing market prices. Regulators said the measure is intended to ease concerns that MTN could become too dominant in telecommunications infrastructure and disadvantage competing operators such as Airtel and T2 Mobile.
The condition means MTN will not obtain unrestricted control of tower services in Nigeria. IHS Towers is a key part of the infrastructure supporting the growth of mobile broadband, 5G and other digital offerings throughout African markets.
MTN reports stronger first-half performance
Separately, MTN approved a R6 billion ($375 million) share buyback after delivering robust results for the first six months of the year.
The group’s earnings before interest, tax, depreciation and amortisation increased 24.4% to R56 billion on a constant-currency basis. Service revenue rose 9.7% to R115.3 billion in reported terms and gained 17.5% when measured at constant exchange rates.
MTN’s customer base expanded 6.7% to 317.7 million subscribers. The number of active data users grew 9.1% to 179.3 million.
