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

Topics Airtel Africa

Airtel Africa will sell 1,424 towers in Madagascar and Malawi to Helios Towers for USD 119 million, Bharti Airtel said in a regulatory filing.

The two companies have also entered into agreement for tower assets in Chad and Gabon but particulars of the deal were not disclosed.

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

"The Group's tower portfolios in these two markets together comprise 1,229 towers which form part of the Group's wireless telecommunications infrastructure network," the filing said.

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

Airtel Africa has also signed a pact with Helios Towers for sale of additional 195 sites across Madagascar and Malawi over the three years following completion for USD 11 million.

"In addition, Airtel Africa has entered into exclusive memorandum of understanding agreements for the potential sale of its tower assets in Chad and Gabon to the purchaser (Helios Towers).

"The 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 firm has around 1,000 towers in these two countries.

Airtel Africa deal in Chad and Gabon will also incorporate lease arrangements with the Helios Towers and build to suit commitments 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 transactions and the proposed transactions to reduce Airtel Africa Group's external debt and to invest in network and sales infrastructure in the respective operating countries.

Airtel Africa has earlier also sold tower assets to Helios for USD 1.3 billion in 2015.

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

"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," Mandava said.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel