Airtel Africa, a leading telecommunications company with presence in 14 countries across the African continent, has announced the first closing of the transaction to sell its telecommunications tower company in Madagascar to Helios Tower Plc.
According to a statement signed by the Group Company Secretary, Simon O’Hara, and made available on the website of the Nigerian Exchange Limited (NGX), Airtel Africa will receive about $51.7 million for the deal.
It is imperative to note that until the completion of the transactions, Airtel Africa will continue to develop, maintain and operate their equipment in the towers under a separate lease agreements with Helios Towers (the purchaser). The lease agreement will be separate from the sale agreement and payments will be made in local currencies by Airtel’s operating entities in the jurisdiction
In addition, the teleco giant noted that the net proceeds from the deal will be used to reduce the Group’s external debt and to invest in its network and sales infrastructure in the host country (Madagascar).
What you should know:
- Earlier in March this year, Airtel Africa Africa had announced the signing of an agreement with Helios Towers Plc to sell its tower companies in Madagascar and Malawi. The teleco giant owned about 1,229 towers in these two markets and they form a critical part of the company’s infrastructure network. The towers as at the period of the announcement were valued at $93.7 million.
- In addition, the teleco giant also announced that it has entered into an exclusive Memorandum of Understanding (MoU) for the potential sale of its 1,000 tower assets in Chad and Gabon. The deal is expected to be executed in similar style with the sale of the Madagascar and Malawi tower assets. It is also expected to be finalized by 2022.
- Helios Towers Plc is a leading telecommunications infrastructure company in Africa with major presence in markets like South Africa, Ghana, Senegal and others.