Airtel To Sells 1,229 Towers To Helios To Reduce Debt
Airtel Africa has sealed an agreement to sell 1,229 towers to Helios Towers plc for $108m.
The telecommunications tower companies to be sold are in its Madagascar and Malawi markets, Airtel said in a statement posted on the Nigerian Stock Exchange on Tuesday.
Airtel’s tower portfolios in the two markets have a a combined 1,229 towers which form part of the Group’s wireless telecommunications infrastructure network.
The group which trades on Nigerian Stock Exchange said the transactions are expected to close in or around th tge fourth quarter of this year.
Airtel said, “The aggregate gross consideration for the Transactions is expected to be approximately $108.
“Under the terms of the Transactions, the Group’s Airtel Africa’s subsidiaries will continue to develop, maintain and operate their equipment on the towers under separate lease arrangements, largely made in local currencies, with the Purchaser.
” In addition, as part of the Transactions, the Group has agreed to build to suit commitments with the Purchaser for an additional 195 sites across Madagascar and Malawi over the three years following completion, for which a further $11m of consideration is payable.”
Airtel Africa also signed an exclusive Memorandum of Understanding agreements for the potential sale of its tower assets in Chad and Gabon to Helios Towers.
The firm said the transactions are part of its effort to strategic divestment of the Group’s tower portfolio.
The group said the proceeds from the Transactions and the Proposed Transactions would be used to reduce Group external debt and to invest in network and sales infrastructure in the respective operating countries.
The group noted that the value of the gross assets in question as of 31 March 2020 was $93.7m
The asset realised profits before tax of $3.3m by 31 March 2020.