M&A

M&A

Airtel Africa sells Tanzania tower portfolio to SBA Communications-Paradigm JV for $175-M

BSE Disclosure  

Airtel Africa, a provider of telecom and mobile money services with a presence in 14 countries across Africa, has sold the tower portfolio belonging to Airtel Tanzania to a joint venture company owned by a wholly-owned subsidiary of SBA Communications Corporation, a global independent owner and operator of wireless communications infrastructure, as majority owner, and by Paradigm Infrastructure Ltd, a UK company focused on developing, owning and operating shared passive wireless infrastructure in selected growth markets. The consideration for the transaction is approximately USD 175 million, of which approximately USD 157.5 million is payable on the first closing date with the balance payable in instalments upon the completion of the transfer of any remaining towers to the purchaser. Around USD 60 million 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 the group level. The tower portfolio in Airtel Tanzania comprises approximately 1,400 towers which form part of the group's wireless telecommunications infrastructure network. The company will continue to develop, maintain and operate its equipment on the towers under a separate lease arrangement with the purchaser.