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(Alliance News) - Airtel Africa PLC on Wednesday said it sold a tower portfolio to a joint venture company owned by a subsidiary of Florida-based SBA Communications Corporation for USD175 million.
London-based Airtel provides telecommunications and mobile money services in 14 African countries.
It said the tower portfolio being sold includes around 1,400 towers in Airtel Tanzania's wireless infrastructure network. Under the terms of the sale, Airtel Tanzania will continue to develop, maintain and operate its equipment on the towers under a separate lease arrangement with SBA.
Airtel is due USD157.5 million from the first closing date later in the financial year 2022. The remaining USD17.5 million will be paid in instalments once any remaining towers have been transferred away from Airtel.
The transaction is the latest strategic divestment of the tower portfolio as the company focusses on an asset-light business model and on its core subscriber-facing operations, Airtel said.
"Around USD60 million from the proceeds will be used to invest in network and sales infrastructure in Tanzania and for distribution to the government of Tanzania, as per the settlement described in the Airtel Africa IPO prospectus document published in June 2019. The balance of the proceeds will be used to reduce debt at group level," the company said.
Airtel shares were trading up 0.8% at 79.73 pence each in London on Wednesday morning. The wider FTSE 250 index was up 0.2%.
By Scarlett Butler; scarlettbutler@alliancenews.com
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