MTN Group Ltd. is seeking local investors to acquire a 30% stake in IHS Nigeria Plc. under an agreement with the country’s antitrust authorities, according to people familiar with the matter.
The deal could raise between $900 million and $1.1 billion, the people said, asking not to be identified because the details are private.
The Nigerian tower operator is the biggest asset for New York listed IHS Holdings Ltd. and operates about 18,000 mobile-phone towers, the people said.
“Proceeds from any sell-down would be used to pay down IHS-related debt,” MTN’s Chief Executive Officer Ralph Mupita said in an interview when asked about the deal, declining to discuss financial details. “The deal would be done on market-oriented valuation basis.”
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MTN agreed to sell part of the business to local entities under an agreement with the Nigerian competition regulator. Earlier this year, the African telecommunications giant said it would buy the 75% of the tower company that it did not already own.
IHS manages about 29,000 towers across the continent, with its largest operations in Nigeria and South Africa.
Africa is home to the fastest-growing and youngest population in the world. They are are increasingly turning to their smartphones for services, which means faster rollout of telecom towers is required.
The telecom towers market size in Africa is estimated to grow 19% to $4.75 billion by 2031, according to Mordorintelligence.
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