With today’s announcement, Airtel has now concluded sale of about 9,000 telecom towers in eight African countries.
Earlier, Airtel announced that it completed the transactions in seven countries for approximately 8,300 towers – for $1.7 billion — representing close to 60 percent of the total tower base. “Agreements have lapsed in four countries while the process is on in the remaining two countries,” said Airtel last week.
Airtel Africa today said Eaton Towers has acquired 2,500 towers from Airtel in four countries — Ghana, Uganda, Kenya and Burkina Faso.
In each of these four countries, Airtel has committed to a 10-year tenancy contract to Eaton Towers.
Negotiations between Eaton and Airtel continue as Airtel remains committed to divesting its tower portfolio in other countries. Divestment of telecom towers is important for Airtel to slash debt and improve profitability.
The tower sale agreements allow Airtel to focus on its core business and customers, to deleverage through debt reduction, and will significantly reduce its on-going capital expenditure on passive infrastructure.
“The conclusion of our transactions in four countries with Airtel, together with the deal to acquire 2000 towers from Mobinil in Egypt, will mean Eaton Towers will have over 6,000 towers and the most diversified tower portfolio across Africa,” said Terry Rhodes, CEO of Eaton Towers.