MTN eyes increased stake in IHS
JSE-listed telecommunications giant MTN is in an advanced stage of discussions with independent tower owner, operator and developer IHS Holdings to acquire the 75% shares it does not already own.
The group, in a statement issued on Sens on Thursday, advised shareholders to exercise caution when dealing in the company's securities as discussions around the potential transaction continue.
The potential offer price is at a level near to the last trading price of IHS on the New York Stock Exchange, which has increased significantly in the recent past, MTN added.
The transaction, if concluded, may have a material effect on the price of the company's securities.
No final agreement has been reached and there is no certainty of the transaction concluding.
However, should this be the case, MTN said it would continue to explore options to unlock value from its investment in IHS and it remained committed to its disciplined capital allocation framework.
In 2022, IHS Holdings acquired more than 5 700 of MTN’s towers for R6.4-billion, with an agreement in place for IHS to provide power management services to MTN on about 13 000 sites, including the acquisition portfolio, across South Africa.
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