MTN guarantees 12-month pay protection for IHS Towers staff
Following MTN Group‘s announcement of the proposed acquisition of IHS Towers, offering $8.50 per share to buy out remaining shareholders and take the company private.
The deal, valued at approximately $2.2 billion, would see MTN increase its stake from 24.7% to 100%, following the recent disposal of IHS’s Latin American assets. The transaction is subject to regulatory approvals and the delisting of IHS from the New York Stock Exchange.
IHS Towers, one of the world’s largest independent tower operators, manages nearly 29,000 towers across Africa, serving multiple mobile operators in MTN’s key markets. The telco giants said the acquisition will strengthen its control over critical digital infrastructure, internalise tower margins, capture third-party revenue, and unlock long-term value.
To support staff through the transition, MTN has committed to a 12-month “Continuation Period” guaranteeing pay and core benefits for all employees. Base salaries, incentives, and benefits, including health and retirement plans, will be maintained at pre-merger levels, and prior years of service will be recognised.
Severance arrangements and equity conversions are also protected to ensure operational stability during integration.
Ralph Mupita, the Group President and CEO of the telco giant, said the acquisition “is a pivotal step in strengthening MTN’s strategic and financial position and reinforces our ability to be partners for progress in the countries where we operate.”
For IHS shareholders, the offer represents a 9.7% premium over the 30-day volume-weighted average price prior to MTN’s announcement, providing an opportunity to crystallise value.
