One of Africa’s top telecommunications company Airtel announced that it has sold its telecoms tower companies in Madagascar and Malawi.
The sale of the tower companies, according to the statement by the company to the Nigerian Stock Exchange (NSE), was to Helios Towers Plc., an independent infrastructure company in Africa.
It stated that the Transactions were comprised of “two separate agreements” for each jurisdiction, with the Transactions projected to “end in or around calendar Q4 2021”.
The statement added that the aggregate gross consideration for the Transactions was estimated to be $108 million.
It said, “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.
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“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 $11m of consideration is payable.”
The company also disclosed that it had entered into “an exclusive Memorandum of Understanding” over the possibility of its tower assets in other African countries like Chad and Gabon.
“The Proposed Transactions are subject to the signing of definitive legal agreements for sale, including customary closing conditions such as required regulatory approvals,” the statement said.
It added, “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.”
