Telecommunications and mobile money services provider- Airtel Africa, on Tuesday said it has sign agreements to sell its telecommunications tower companies in Madagascar and Malawi to Helios Towers Plc.
The portfolios comprising 1,229 towers which form part of the Group’s wireless telecommunications infrastructure network, according to a statement to the Nigerian Stock Exchange is expected to be approximately $108m.
The transactions, which are expected to close in Q4 2021, the statement further explained, comprise of “two separate agreements, one in respect of each jurisdiction, are subject to customary closing conditions including required regulatory approvals and are not inter-conditional on each other.”
In addition, a statement by Simon O’Hara, the Group Company Secretary, said it has also entered into exclusive Memorandum of Understanding agreements for the potential sale of its tower assets in Chad and Gabon, subject to the signing of definitive legal agreements. This includes customary closing conditions such as required regulatory approvals, expected to also incorporate lease arrangements with the Purchaser and build-to-suit commitments in Chad and Gabon.
The transactions and the proposed transactions, the statement explained, are the latest strategic divestment of the group’s tower portfolio, in its bid to focus on an asset-light business model and on its core subscriber-facing operations.
Proceeds from these will be used to reduce Airtel Africa’s external debt and to invest in network and sales infrastructure in the respective operating countries.
The group put value of the gross assets the subject of the Transactions at 31 March 2020 was $93.7m and the profits before tax for the year attributable to the assets the subject of the Transactions are $3.3m.
According to “the terms of the transactions, 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.”
The proposed transactions, which are not inter-conditional, are expected to close before the end of our fiscal year 2022, with group expected to disclose consideration details for the Proposed Transactions upon signing of the acquisition agreements in each market.
The Group’s tower portfolios in the two markets of the Proposed Transactions together comprise c.1,000 towers which form part of the Group’s wireless telecommunications infrastructure network.
Commenting, 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.
Airtel Africa, Helios Agree Sale Of 1,229 Towers In Two Countries For $108m
Telecommunications and mobile money services provider- Airtel Africa, on Tuesday said it has sign agreements to sell its telecommunications tower companies in Madagascar and Malawi to Helios Towers Plc.
The portfolios comprising 1,229 towers which form part of the Group’s wireless telecommunications infrastructure network, according to a statement to the Nigerian Stock Exchange is expected to be approximately $108m.
The transactions, which are expected to close in Q4 2021, the statement further explained, comprise of “two separate agreements, one in respect of each jurisdiction, are subject to customary closing conditions including required regulatory approvals and are not inter-conditional on each other.”
In addition, a statement by Simon O’Hara, the Group Company Secretary, said it has also entered into exclusive Memorandum of Understanding agreements for the potential sale of its tower assets in Chad and Gabon, subject to the signing of definitive legal agreements. This includes customary closing conditions such as required regulatory approvals, expected to also incorporate lease arrangements with the Purchaser and build-to-suit commitments in Chad and Gabon.
The transactions and the proposed transactions, the statement explained, are the latest strategic divestment of the group’s tower portfolio, in its bid to focus on an asset-light business model and on its core subscriber-facing operations.
Proceeds from these will be used to reduce Airtel Africa’s external debt and to invest in network and sales infrastructure in the respective operating countries.
The group put value of the gross assets the subject of the Transactions at 31 March 2020 was $93.7m and the profits before tax for the year attributable to the assets the subject of the Transactions are $3.3m.
According to “the terms of the transactions, 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.”
The proposed transactions, which are not inter-conditional, are expected to close before the end of our fiscal year 2022, with group expected to disclose consideration details for the Proposed Transactions upon signing of the acquisition agreements in each market.
The Group’s tower portfolios in the two markets of the Proposed Transactions together comprise c.1,000 towers which form part of the Group’s wireless telecommunications infrastructure network.
Commenting, 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,“ he added.
“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,“ he added.
