(Sharecast News) - Airtel Africa said on Wednesday that it has agreed the sale of its Tanzania tower portfolio to a joint venture owned by a subsidiary of SBA Communications Corp and Paradigm Infrastructure for around $175m.
Around $60m from the proceeds will be used to invest in network and sales infrastructure in Tanzania and for distribution to the Government of Tanzania. The balance of the proceeds will be used to reduce debt at group level, Airtel said.
The tower portfolio in Airtel Tanzania comprises approximately 1,400 towers which form part of the group's wireless telecommunications infrastructure network. Under the terms of the deal, the company's Airtel Tanzania subsidiary will continue to develop, maintain and operate its equipment on the towers under a separate lease arrangement with the buyer.
"The transaction is the latest strategic divestment of the group's tower portfolio as it focusses on an asset-light business model and on its core subscriber-facing operations," Airtel said.
Airtel Africa (AAF)13 Jun 2024 16:15