Airtel Africa has sold its tower portfolio belonging to Airtel Tanzania to a joint venture (JV) company of SBA Communications Corporation and Paradigm Infrastructure for $175 million.
The tower portfolio in Airtel Tanzania comprises around 1,400 towers which form part of the group’s wireless telecommunications infrastructure network. Under the deal, Airtel Tanzania will continue to develop, maintain and operate its equipment on the towers under a separate lease arrangement with the purchaser.
According to Airtel, the consideration for the transaction is about $175 million, of this, approximately $157.5 million is payable on the first closing date which is expected to take place in the second half of the group’s current financial year. The balance is payable in instalments on the completion of the transfer of any remaining towers to the purchaser.
Further, the company added that around $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. Rest of the proceeds will be used to reduce debt at the group level.
