View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
March 26, 2021updated 03 Apr 2021 2:36pm

Mobile money provider Airtel Africa to sell its towers in 4 countries

By Mohamed Dabo

Airtel Africa, a major provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, has signed an agreement to sell its telecommunications tower companies in Madagascar and Malawi.

Free Report
img

Prepare for changes in the Payments market

 The Payments market has seen drastic changes in the past few years, with this only expected to continue. What does your company need to do to prepare for what’s to come? GlobalData’s Payment Trends for 2022 report explores the key trends in technology, consumer habits, and regulations shaping the market. We also identify the leading companies in this changing market, giving you a competitive market outlook. This report covers the impact of:
  • ESG
  • E-commerce
  • Mobile payments
  • Alternative payment rails (Real-Time Payments, Blockchain, BNPL)
  • Fraud & Cybersecurity
  • Regulations
Download the report now to learn essential strategies to maximize your growth in the face of rapid change.
by GlobalData
Enter your details here to receive your free Report.

A separate agreement proposes the sale of tower assets in Chad and Gabon to the same purchaser.

The purchaser is Helios Towers, an independent telecommunications infrastructure company operating in Africa.

Airtel’s tower portfolios in the two markets together comprise 1,229 towers which form part of the group’s wireless telecommunications infrastructure network.

The transactions comprises two separate agreements, one in respect of each jurisdiction. Both deals are subject to customary closing conditions including required regulatory approvals and are not inter-conditional on each other.

The transactions are expected to close in or around calendar Q4 2021.

Aggregate gross consideration for the transactions is expected to be approximately $108m.

Airtel Africa will continue to develop, maintain, and operate the equipment

Under the terms of the transactions, the group’s Airtel Africa’s subsidiaries will continue to develop, maintain, and operate their equipment on the towers under separate lease arrangements.

These arrangements are largely made in local currencies, with the Purchaser.

In addition, as part of the transactions, the group has agreed to build to suit commitments with the purchaser for an additional 195 sites across Madagascar and Malawi over the three years following completion.

For these a further $11m of consideration is payable.

The potential sale of its tower assets in Chad and Gabon is part of an exclusive memorandum of understanding.

Significant portfolios of towers are involved in the deals

The proposed transactions are subject to the signing of definitive legal agreements for sale, including customary closing conditions such as required regulatory approvals.

It is envisaged that the proposed transactions will also incorporate lease arrangements with the purchaser and build to suit commitments in Chad and Gabon.  The proposed transactions are not inter-conditional and are expected to close before the end of our fiscal year 2022.

The group expects to disclose consideration details for the proposed transactions upon signing of the acquisition agreements in each market.

The group’s tower portfolios in the two markets of the proposed transactions together comprise around 1,000 towers which form part of the group’s wireless telecommunications infrastructure network.

The transactions and the proposed transactions are 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.

The proceeds from the transactions and the proposed transactions will be used to reduce group external debt and to invest in network and sales infrastructure in the respective operating countries.

 

Free Report
img

Prepare for changes in the Payments market

 The Payments market has seen drastic changes in the past few years, with this only expected to continue. What does your company need to do to prepare for what’s to come? GlobalData’s Payment Trends for 2022 report explores the key trends in technology, consumer habits, and regulations shaping the market. We also identify the leading companies in this changing market, giving you a competitive market outlook. This report covers the impact of:
  • ESG
  • E-commerce
  • Mobile payments
  • Alternative payment rails (Real-Time Payments, Blockchain, BNPL)
  • Fraud & Cybersecurity
  • Regulations
Download the report now to learn essential strategies to maximize your growth in the face of rapid change.
by GlobalData
Enter your details here to receive your free Report.

Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Electronic Payments International