(Alliance News) - Helios Towers PLC said Wednesday it has closed the acquisition of Airtel Africa PLC's passive infrastructure company in Madagascar.
The gross consideration for the deal will be USD51.7 million.
Helios Towers and Airtel Africa have entered into a 12-year service agreement on the acquired assets.
Helios expects the deal to add adjusted earnings before interest, tax, depreciation and amortization of USD5 million in the first full year of ownership, with further growth expected over the next three years.
Airtel said the proceeds from the sale will be used to reduce its debt and to invest in network and sales infrastructure in Madagascar.
Shares in Helios Towers were 0.7% lower in London on Wednesday morning at 150.00 pence each. Airtel Africa was down 0.3% at 109.70p.
By Paul McGowan; paulmcgowan@alliancenews.com
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Airtel Africa (AAF)
Helios Towers (HTWS)