(Alliance News) - Helios Towers PLC on Tuesday announced it has found a local partner to take a minority stake in its acquisition of telecommunication assets in Oman.
The Africa-focused mobile phone tower developer has agreed to purchase 70% of newly-incorporated holding company which will hold Omantel's passive tower infrastructure portfolio of 2,890 sites.
Oman Infrastructure Fund, through its wholly-owned subsidiary Rakiza Telecommunication Infrastructure LLC, will purchase the remaining 30%.
Helios Towers had previously intended to be the sole purchaser. The rationale for the partnership is to combine the operational expertise of Helios with the local and regional expertise of Rakiza.
The USD575 million cash consideration due to Omantel for the assets will remain the same, but will be split between the two parties according to their stake in the holding company.
"We are delighted to be partnering with Rakiza, who offers Helios Towers a wealth of local knowledge as we enter the Omani market and seek to strengthen our foothold in the Middle East. Rakiza not only offers a highly experienced management team through its deep public and private sector expertise, but it is also closely aligned to our goal of driving sustainable value creation through infrastructure and connectivity," said Chief Executive Officer Tom Greenwood.
Shares in Helios were down 1.7% to 123.34 pence each in London on Tuesday morning.
The target assets are still expected to deliver annual revenue of USD59 million and adjusted earnings before interest, tax, depreciation and amortisation of USD40 million in the first full year of operations.
Helios will fund the acquisition through existing cash and available bank facilities.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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Helios Towers (HTWS)