Airtel Africa has sold its tower units in Madagascar and Malawi to Helios Towers Plc for around $108 million.
The telecommunication firm has also signed separate deals with the UK telecom infrastructure company for the potential sale of its tower assets in Chad and Gabon by end-FY22.
The combined value of the tower asset deals across the four African markets is estimated at around $250 million. The funds would be used to reduce Airtel Group debt and invest in network and sales infrastructure in the respective operating countries.
“Airtel Africa announces the signing of agreements to sell its telecommunications tower companies in Madagascar and Malawi to Helios Towers plc, and the aggregate gross consideration for the transactions is expected to be approximately $108 million,” the company said in a statement.
It added that the Madagascar/Malawi transactions, comprising two separate agreements, one in respect of each jurisdiction, “are subject to customary closing conditions, including required regulatory approvals and are not inter-conditional on each other.”
Airtel Africa said it had also “entered into an exclusive memorandum of understanding agreements for the potential sale of its tower assets in Chad and Gabon to Helios,” adding that the “proposed transactions” are not inter-conditional and likely to close before end-FY22 and that the consideration details would be disclosed upon signing of the acquisition agreements in each market.
Airtel Africa’s towers portfolio in Madagascar and Malawi comprise 1,229 towers, while it has another 1000-odd across Chad and Gabon.
Airtel Africa CEO Raghunath Mandava said the latest tower transactions underline the company’s strong execution of its asset monetisation programme.
“These transactions will help to improve the mix of our debt and increase its tenor through long-term leases, which are largely payable in local currency by our operating entities while reducing foreign currency debt of the Group,” he added.
Airtel Africa added that as part of the Madagascar and Malawi transactions, it would build — to suit commitments with Helios — an additional 195 sites in these markets over the three years following completion, for which “a further $11 million of consideration is payable”.
Under the transaction terms, the Airtel Africa units would continue to develop, maintain and operate their equipment on the towers under separate lease arrangements, largely made in local currencies, with Helios.
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