MTN Group will take complete control of IHS Holding, acquiring the roughly 75 percent stake it does not already own in a transaction that values the African tower operator at about 6.2 billion US dollars, Reuters reported. Upon completion, IHS will be delisted and become a wholly owned subsidiary of MTN.

The mobile operator will pay 8.50 US dollars per share in cash. Funding for the acquisition will come from several sources, including MTN’s existing 24 percent stake in IHS, approximately 1.1 billion US dollars in cash from MTN, around 1.1 billion US dollars from IHS’ balance sheet, and the rollover of a limited portion of existing IHS debt, according to IHS’ statement.

The transaction reverses a decade-long trend in which MTN, like many operators, had sold towers to independent infrastructure firms and leased them back. Regaining direct ownership of the assets is expected to reduce long-term rental costs and give MTN greater flexibility for 5G and fibre deployment across its networks.

The proposed offer reflects a 36 percent premium over IHS’ 52-week volume-weighted average share price and a three percent premium over its closing price on February 4, Reuters noted, when early reports suggested that acquisition discussions were underway.

MTN Group President and CEO Ralph Mupita described the agreement as a “pivotal step in further strengthening MTN Group's strategic and financial position for a future where digital infrastructure will become ever more essential to Africa's growth and development.” The IHS board has unanimously endorsed the deal and will recommend it to shareholders.

Long-term shareholder Wendel (MWDP.PA) has also agreed to support the transaction. The European investment firm said it will receive roughly 535 million US dollars for its 19 percent stake once the deal closes.

Separately on Tuesday, IHS confirmed the sale of its Latin American tower operations in Brazil and Colombia to Macquarie Asset Management. Following the acquisition, MTN will retain ownership of nearly 29,000 towers in Africa.