Airtel Africa, a subsidiary of Bharti Airtel, has agreed to sell 1,424 telecom towers in Madagascar and Malawi to Helios Towers for around $119 million.
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, 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 $11 million of consideration is payable,” Airtel said.
Airtel Africa has also entered into exclusive MoU for the potential sale of its tower assets in Chad and Gabon to the purchaser.
“With these latest tower transactions we continue to demonstrate strong execution of our asset monetisation program. 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,” Raghunath Mandava, chief executive officer, Airtel Africa, said.
The proposed transactions will also incorporate lease arrangements with the purchaser 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.