WED 03 NOV, 2021-theGBJournal- Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, today announces the first closing of the transaction to sell its telecommunications tower company in Madagascar to Helios Towers plc, a leading independent telecommunications infrastructure company in Africa.
‘’The gross consideration for the transaction will be $51.7m,’’ the telecoms giant said.
In a statement signed by Chris Baker-Sams, Head of Strategic Finance and Investor Relations, Helios Towers, said both parties have also entered into a 12-year service agreement on the acquired assets, which, in-line with prior communications, are expected to deliver Adjusted EBITDA of US$5 million in the first full year of ownership, with further growth anticipated through 135 committed build to suits over the next three years and colocation lease-up.
‘’The proceeds from the transaction will be used to reduce Group external debt and to invest in network and sales infrastructure in Madagascar,’’ Airtel Africa said in its own statement on the deal.
Helios Towers is a leading independent telecommunications infrastructure company, having established one of the most extensive tower portfolios across Africa. It builds, owns and operates telecom passive infrastructure, providing services to mobile network operators.
The telecommunications infrastructure company said it expects to establish a presence in five new markets across Africa and the Middle-East over the next 12 months, subject to regulatory approvals.
Including these acquisitions and committed BTS, the Group’s total site count is expected to increase from over 7,300 towers as reported in Q1 2021 to approaching 15,000.
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