(Alliance News) - Airtel Africa PLC announced on Wednesday the sale of its telecommunications tower assets in Tanzania to a joint venture containing SBA Communications Corp and Paradigm Infrastructure Ltd.
The London-based telecommunications and mobile money services company said the total consideration is USD176.1 million. Airtel Africa added that around USD159 million of the proceeds have been now paid.
The company explained that USD60 million from the sale will be used to invest in network and sales infrastructure in Tanzania as well as to reduce group debt.
Airtel Africa will continue to develop, maintain and operate its equipment on the towers under separate lease arrangements with SBA Communications and Paradigm Infrastructure.
SBA Communications is a Florida-based owner and operator of wireless communication infrastructure. The company is now majority owner of the tower.
Paradigm Infrastructure is a Northampton-based wireless infrastructure developer.
Shares in Airtel Africa were down 1.6% at 138.78 pence on Wednesday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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Airtel Africa (AAF)