Helios Towers Africa announced that it has reached an agreement to acquire Vodacom’s existing Tower network in Tanzania.
The mechanics of the transaction is listed below:
- Vodacom will transfer 1,149 telecoms towers to Helios Towers Tanzania and Helios will supply Vodacom with an increase in points of service;
- Vodacom will then lease back the infrastructure subject to a long term contract
The deal is valued at about $75m, although it is complicated by the fact that Vodacom will acquire a quarter stake in the business as part of the transaction.
The deal will expand Helios Towers Africa’s coverage in Africa to 4,700 owned towers and is another example of HTA partnering with an industry-leading mobile network operator in Africa. This partnership model is core to HTA’s offering.
By collaborating with its customers and being solely focused on providing a telecoms infrastructure solution, HTA helps its customers to achieve their goals of reducing operating cost, preserving capital, focusing on their core business, and mitigating the proliferation of towers through infrastructure sharing, as they expand network coverage and capacity to meet demand and improve quality of service.
Chuck Green, Chief Executive Officer of HTA, added: “HTA is proud to be chosen by Vodacom as its partner for the ownership and management of its existing infrastructure and as the solution provider for its future roll out. This is a ground-breaking move for Vodacom and their equity investment is a significant endorsement of HTA’s reputation, management team and operating track record.”
