MTN, led by Zimbabwean exec Ralph Mupita, re-engages tower operator on governance issues

Timilehin Adejumobi -

Key Points

  • MTN Group and IHS Holding resume governance talks after extending tower leases across 26,000 sites in six African nations.
  • MTN seeks voting rights proportional to its 26% stake and more influence over board appointments, while IHS contests this.
  • Despite a revenue drop and share decline, MTN remains focused on digital expansion under Ralph Mupita.

MTN Group, Africa’s largest mobile network operator led by Zimbabwean executive Ralph Mupita, has resumed governance talks with tower operator IHS Holding, after a year of strained relations. This follows the renewal of tower leases across 26,000 sites in six African nations — a pivotal commercial agreement that has set the stage for renewed governance discussions.

Commercial agreement sparks governance talks

The renewed dialogue is centered around MTN’s desire for voting rights proportional to its 26% economic interest and greater influence over board appointments, demands that IHS has previously contested. The resolution of these governance issues is seen as crucial for MTN, which seeks to enhance its influence within IHS.

MTN CEO Ralph Mupita commented on the lease renewals, stating, “The extension of various contracts across our markets into the next decade solidifies MTN’s operational stability. We anticipate a constructive resolution to the governance issues now that the commercial terms are finalized.” Mupita’s optimistic outlook underscores the importance of these discussions in ensuring the company’s strategic interests are well-represented.

MTN’s strategic milestones under Ralph Mupita

Under Ralph Mupita’s leadership, MTN Group has achieved significant milestones, serving more than 288 million subscribers across 18 markets. His strategic vision and execution have fueled MTN’s expansion, earning him recognition as one of Southern Africa’s most influential CEOs. His minority stake in MTN is currently valued at $4.1 million.

Despite a challenging first quarter in 2024, where MTN’s service revenue fell by R9.93 billion ($539.92 million), the company remains focused on driving digital solutions across Africa. In recent moves, one of its subsidiaries, MTN Nigeria, extended its tower Master Lease Agreements with IHS until December 2032, covering about 13,500 tenancy contracts. This extension ensures the continuity of their collaboration and reinforces MTN’s commitment to operational stability.

Telecom giants eye collaborative governance

The tension between MTN and IHS dates back to June last year, following a contentious IHS annual meeting where shareholder influence became a flashpoint. While IHS managed to reach a governance agreement with its second-largest shareholder, Wendel SE, discussions with MTN have been ongoing. The renewed talks aim to address these lingering issues and establish a more collaborative governance framework.

As MTN and IHS navigate these governance talks, the outcome will likely set a precedent for future collaborations and influence shareholder dynamics within Africa’s telecommunications sector. Both companies are poised to benefit from a constructive resolution, enhancing their operational synergies and market presence across the continent.