Airtel sells telecommunications tower companies in Madagascar and Malawi to Helios Towers
Airtel Africa today announced that it is selling its telecommunications tower companies in Madagascar and Malawi to Helios Towers Plc.
Airtel Africa today announced that it is selling its telecommunications tower companies in Madagascar and Malawi to Helios Towers Plc. The two companies have signed agreements in this regard. The aggregate gross consideration for the Transactions is expected to be approximately $108 million.
The Group's tower portfolios in these two markets together comprise 1,229 towers, which form part of the Group's wireless telecommunications infrastructure network.
Airtel Africa is a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa. Helios Towers plc is a leading independent telecommunications infrastructure company in Africa.
The Transactions, comprising two separate agreements, one in respect of each jurisdiction, 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.
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, 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 which a further $11 million of consideration is payable.
Besides, Airtel Africa has entered into exclusive Memorandum of Understanding agreements for the potential sale of its tower assets in Chad and Gabon to Helios Towers. 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 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 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. The value of the gross assets the subject of the Transactions at March 31, 2020, was $93.7 million and the profits before tax for the year to March 31, 2020, attributable to the assets the subject of the Transactions are $3.3 million.