Oga, big tins dey happen for telecom world as MTN don move closer to buy IHS Holding Limited for $2.2 billion. IHS board don give approval, and shareholders dey ready to vote for di transaction.
According to filing with U.S. Securities and Exchange Commission, IHS shareholders go vote for extraordinary general meeting wey go hold for London later dis year. If di vote pass, IHS go delist from New York Stock Exchange and become private company.
Di deal go make MTN own IHS completely, including all di telecom towers wey IHS dey manage across Africa, Middle East, and Latin America. IHS currently dey manage about 28,700 towers, with almost 16,000 for Nigeria alone, where e get 41% market share.
MTN na both di biggest shareholder and biggest customer of IHS, contributing about 62% of IHS revenue. So dis acquisition go give MTN better control over critical infrastructure for networks.
Major shareholders don already show support. MTN’s investment vehicle, wey get about 21% voting rights, don promise to vote yes. French investment firm Wendel, wey get about 20%, also dey support. Together, dem control more than 40% of voting rights.
IHS directors unanimously approve di merger agreement, saying e dey for best interest of company and shareholders. Di deal price include premium above recent average market trading price.
Before di acquisition go final, IHS must first finish di divestment of ein Latin American operations. Di proxy statement still dey preliminary, and final voting details go come later.
Industry analysts say African telecom operators dey increasingly want direct control of critical infrastructure because of inflation, currency wahala, and rising costs wey dey affect profitability. Di deal go help MTN reduce dependence on third-party tower managers and improve network optimisation.
If di vote pass, IHS go end as public company after only about five years for New York Stock Exchange, since e list for 2021. For di deal to succeed, at least two-thirds of votes cast must be in favour.
