Airtel Africa to sell 1,424 towers to Helios for $ 119 million

Bharti Airtel said that Airtel Africa will sell 1,424 towers in Madagascar and Malawi for $ 119 million.

The two companies have also entered into agreements for tower properties in Chad and Gabon but details of the deal were not disclosed.

Airtel Africa today (on Tuesday) announced the signing of agreements to sell its telecom tower companies in Madagascar and Malawi to Helios Towers plc.

“The group’s tower portfolio in these two markets consists of 1,229 towers that are part of the group’s wireless telecommunications infrastructure network,” said Dhillin.

The transaction is expected to close in the last quarter of 2021.

Airtel Africa has also signed an agreement with Helios Towers for the sale of an additional 195 sites across Madagascar and Malawi, completing for USD 11 million over three years.

“In addition, Airtel Africa has entered into an exclusive Memorandum of Understanding for Buyer (Helios Towers) for the possible sale of its tower assets in Chad and Gabon.

“Proposed transactions are subject to the signing of definitive legal agreements for sale, including customary closing conditions such as required regulatory approvals,” the filing said.

The telecom service provider has about 1,000 towers in these two countries.

The Airtel Africa deal in Chad and Gabon will also incorporate a lease arrangement with Helios Towers and build commitments for the suit in Chad and Gabon. “The proposed transactions are not inter-conditional and are expected to close before the end of our fiscal year 2022,” the filing said.

The company will use the proceeds from the transaction and proposed transactions to reduce external debt of Airtel Africa Group and invest in network and sales infrastructure in the respective operating countries.

Airtel Africa had previously sold tower assets for USD 1.3 billion in 2015.

Airtel Africa CEO Raghunath Mandav said Helios Towers has been a partner of the group for many years.

“These transactions will help improve our debt mix and extend its tenure through long-term leases, which are owed substantially by our operating entities in local currency, while reducing the group’s foreign currency debt Do, ”Mr. Mandava said.