(Alliance News) - Helios Towers PLC on Wednesday said it has acquired over 1,200 mobile tower infrastructure assets in Senegal for a total consideration of EUR200 million.
The telecommunications infrastructure company has agreed to acquire the assets from Free Senegal, the second largest mobile operator in Senegal.
The deal consideration includes an upfront cash consideration of EUR160 million and a deferred payout of EUR40 million. Helios also has committed to invest EUR30 million over the next five-years in relation to the rollout of 400 committed new build-to-suit mobile tower sites.
The company and Free Senegal have entered into a 15-year service agreement for the provision of hosting and energy services on the acquired sites and the sites to be built in the future.
The acquired assets are expected to initially deliver run-rate revenue of EUR32 million and run-rate adjusted earnings before, interest, tax, depreciation and amortisation of EUR16 million. The assets generated EUR11 million in pretax profit in 2019.
Helios' Chief Executive Officer Kash Pandya said: "This agreement is aligned perfectly with our 2025 strategic ambitions, broadening our footprint within the African towers infrastructure market."
Shares in Helios were up 1.8% at 170.00 pence each in London on Wednesday morning.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Helios Towers (HTWS)