Airtel Africa Plc (NGX: AIRTELAFRI) on Wednesday through a publication on the Nigerian Exchange announced the first closing of its tower sale transaction in Tanzania.
In June 2021, Investogist reported about the sale of the tower portfolio belonging to Airtel Tanzania, which is part of the 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 Telecommunications tower assets in Tanzania has been sold to a joint venture company owned by a wholly-owned subsidiary of SBA Communications Corporation, a leading global independent owner and operator of wireless communications infrastructure, as majority owner, and by Paradigm Infrastructure Limited, a UK company focused on developing, owning and operating shared passive wireless infrastructure in selected growth
markets.
- Have you read?
- Wema Bank Plc to raise N40.00 billion capital by way of rights issue
- NGX Equities Market Report: Local Bourse Continue on it’s Positive Trajectory, up 1% on Wednesday
The gross consideration for the transaction will be $176.1m. Under the terms of the transaction, Airtel Africa’s subsidiary in Tanzania will continue to develop, maintain and operate its equipment on the towers under separate lease arrangements, largely made in local currencies, with the Purchaser.
With this first closing, approximately $159m of the proceeds for the transaction has now been paid, with the balance payable in instalments upon the completion of the transfer of remaining towers to the Purchaser.
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, as per the settlement described in the Airtel Africa IPO Prospectus document published in June 2019. The balance of the proceeds will be used to reduce debt at Group level.
About Airtel Africa
Airtel Africa is a leading provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa. Airtel Africa offers an integrated suite of telecommunications solutions to its subscribers, including mobile voice and data services as well as mobile money services both nationally and internationally.
About SBA Communications
Corporation SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 33,000 communications sites in fourteen markets throughout the Americas and South Africa, SBA is listed on NASDAQ under the symbol SBAC. SBA is part of the S&P 500 and is one of the top 20 Real Estate Investment Trusts (REITs) based on market capitalization.
About Paradigm
Paradigm Infrastructure Limited is a UK company focused on developing, owning and operating shared passive wireless infrastructure in selected growth markets. Founded in 2019, Paradigm’s executive and management team bring together significant industry experience in starting up operations, managing and growing successful businesses in the TowerCo sector. This includes the establishment of new tower companies in Nigeria, South Africa, Ghana, Uganda, Germany, Brazil, Mexico, Chile, Columbia and Paraguay, along with the operational management of over 90,000 tower sites across EMEA, LatAm and the USA
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
