IHS Holding Limited recorded $96.4 million in one-off long-term employee benefit costs during the first nine months of 2026. This was revealed in the group’s earnings release covering the third quarter of 2026.
The staff benefits and associated payments were driven by business disposals and the ongoing $2.2 billion merger deal with MTN Group Limited. In February, MTN disclosed its plan to acquire the remaining 75% stake in IHS that it did not currently own.
Also read: MTN secures key approvals for IHS deal, faces regional clearance test.
The financial disclosure, associated with administrative costs, highlights the significant human capital expenses linked to the proposed takeover.
During the third quarter alone, IHS paid employee benefit costs of $39.0 million, which were associated with the buyout, compared to zero during the same period in 2025. The payment stems from contractual obligations triggered by business disposals and structural adjustments following the merger agreement entered into with MTN in February 2026.
As part of the requirements to complete the deal, IHS Holdings is accelerating the employee benefit payment.
Aside from workforce expenses, the group made other transaction and operational expenses related to its ongoing corporate restructuring. The tower infrastructure operator incurred $13.1 million in Q3 2026 and $35.9 million across the nine months ending September 2026 for one-off expenses related to strategic initiatives and operating systems updates, signalling an increase from $0.8 million and $5.1 million in 2025, respectively.
In contrast, internal reorganisation costs dropped to zero for both the three-month and nine-month periods, down from $1.8 million and $3.5 million recorded in the prior year. This indicates the company has cleared early-stage restructuring hurdles to focus fully on final regulatory approvals.
Both MTN and IHS are confident that the merger will be completed before the end of 2026.
MTN’s package for IHS’ employees
Beyond the $96.4 million employee benefit payment by IHS, MTN has previously highlighted job security and other benefits for these employees after the acquisition is completed.
A major benefit is that MTN offered IHS employees a 12-month salary guarantee, effective from when the merger takes effect. In Section 6.7 of the filing titled “Employment and Company Benefits,” MTN said they will enjoy other compensation and benefits signed under an agreement with their former Boss.
MTN also noted that employees will receive other compensation and benefits that are substantially similar to what they had before. This includes equity or long-term incentives, pension and retirement benefits, deferred compensation, severance arrangements, perks and general benefits.
Meanwhile, the telecom operator noted that there’ll be no job guarantee after the expiration of the one-year period and that nothing under the agreement stops the company from firing employees at any time.
MTN can also change, amend, or cancel these benefits. But this can only come a year after the merger.
Also read: IHS Nigeria revenue surges 34.1% to $359.4m in Q3’26, accounts for 73% of group revenue.
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