Bharti Airtel is likely to conclude a deal to sell its tower assets in Africa for about $3 billion. The operator is expected to finalise the deal in June 2014.
As per industry reports, Bharti Airtel has shortlisted four buyers. These include Helios Towers Africa, HIS Towers, American Tower Corporation and Eaton Towers.
Bharti Airtel plans to use the proceeds of the sales to pare its debt. The operator?s net debt at the end of 2013-14 stood at $10.4 billion, which would come down following the tower sale, thereby reducing the stress on the company?s balance sheet. Over the past year, the company has been refinancing large parts of its debt pile by issuing overseas bonds in a bid to lower its net finance payouts.
Having started its operations in Africa in 2010, Bharti Airtel, at present, operates in 17 African countries and has a network of about 15,000 towers. The operator?s Africa business is yet to make a profit and the company has been making attempts to sell its African tower business for the past year. The high cost of running and maintaining the infrastructure network in Africa has been weighing down Bharti Airtel?s consolidated results, therefore the company is keen on selling its tower business.
