Airtel Africa will sell 1,424 towers in Madagascar and Malawi to Helios Towers for USD 119 million, Bharti Airtel said in a regulatory filing.
The two companies have also entered into agreement for tower assets in Chad and Gabon but particulars of the deal were not disclosed.
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," the filing said.
Airtel Africa Plc will also build 195 sites across the two regions over the next three years for $11 million, which will be handed over to Helios Towers upon completion.
“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," the company said.
In addition, 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," the filing said.
Airtel Africa deal in Chad and Gabon will also incorporate lease arrangements with the Helios Towers 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 filing said.
The company will use the proceeds from the transactions and the proposed transactions to reduce Airtel Africa Group's external debt and to invest in network and sales infrastructure in the respective operating countries.
Airtel Africa has earlier also sold tower assets to Helios for USD 1.3 billion in 2015.
Airtel Africa CEO Raghunath Mandava said Helios Towers has been a partner of the group for many years. "These transactions will also help to improve the mix of our debt and increase its tenor through long-term leases, which are largely payable in local currency by our operating entities, while reducing foreign currency debt of the group," Mandava said.
