Airtel Africa, a leading telecommunications company in Africa, on Tuesday announced it has signed deals to sell its telecommunications tower companies in Madagascar and Malawi.
The telecoms giant stated in a statement signed by Simon O’Hara Group Company Secretary, Airtel Africa.
Helios Towers Plc, a leading independent telecommunications infrastructure company in Africa, agreed to buy the two-tower companies in two separate agreements in respect of each jurisdiction.
Airtel Africa expects to close the deal around the fourth quarter of 2021.
The earnings from the deals is expected to be around $108 million. However, under the terms of the deals, 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.”
Speaking on the deals, Raghunath Mandava, CEO of Airtel Africa, said: “With these latest tower transactions we continue to demonstrate strong execution of our asset monetisation programme. Helios Towers has been a partner to our business in some of the OPCOs for many years and we look forward to further expanding this partnership with these new leases as we together seek to improve mobile connectivity and infrastructure across Africa.
“These transactions will also 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.“
