Nigerian Government to Review $6.2B MTN-IHS Deal

The Nigerian government, through Minister of Communications, Innovation, and Digital Economy Bosun Tijani, announced plans to scrutinize the proposed $6.2 billion acquisition of IHS Holdings by MTN Group. This regulatory review is prompted by concerns regarding the critical role of telecommunications infrastructure in Nigeria's economy and national security.

The transaction involves MTN Group gaining full ownership of IHS Holdings, which operates approximately 10,000 sites across major markets, including Nigeria. Tijani highlighted that the acquisition would not be treated as a routine corporate transaction due to the sensitive nature of telecom infrastructure assets.

The government aims to ensure consumer protection and the long-term health of the sector, particularly as it has shown signs of recovery in recent years. The deal, which includes a cash payment of $8.50 per ordinary share, represents a 36% premium over the 52-week volume-weighted average price of the shares.