Airtel Sells Subsidiary In Madagascar For $51.7m
Airtel Africa Plc has decided to sell its telecommunications tower company in Madagascar to Helios
Towers Plc for $51.7 million.
The company explained that the fresh transaction came five months after Airtel Africa announced the sale of the tower portfolio of its subsidiary in Tanzania to SBA Communications Corporation and Paradigm Infrastructure Limited for $175milliin in a move to reduce its external debt and to invest more in the network.
Also, its Company Secretary, Simon O’Hara said that the transaction would see Airtel continue to develop, maintain and operate its equipment on the towers under separate lease arrangements, largely made in local currencies, with the purchaser.
He explained: “Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, today announces the first closing of the transaction to sell its telecommunications tower company in Madagascar to Helios Towers plc, a leading independent telecommunications infrastructure company in Africa.
“The gross consideration for the transaction will be $51.7million. Under the terms of the transaction, the
Group’s Airtel Africa’s subsidiary will continue to develop, maintain and operate its equipment on the towers under separate lease arrangements, largely made in local currencies, with the purchaser. The proceeds from the transaction will be used to reduce Group external debt and to invest in network and sales infrastructure in Madagascar.
“The fresh transaction comes five months after Airtel Africa announced the sale of the tower portfolio of its subsidiary in Tanzania to SBA Communications Corporation and Paradigm Infrastructure Limited,.adding that the transaction was approximately $175milliin, with $157.5million payable on the first closing deal expected to take place in the second half of the year.”
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