Airtel’s subsidiary sells tower portfolio in Tanzania for USD175 mn

The deal marks the latest strategic divestment of the group’s tower portfolio as it focuses on an asset-light business model and on its core subscriber-facing operations.

In a statement, Airtel Africa announced “the sale of the tower portfolio belonging to Airtel Tanzania to a joint venture company owned by a wholly-owned subsidiary of SBA Communications Corporation, a leading global independent owner and operator of wireless communications infrastructure, as majority owner, and by Paradigm Infrastructure Limited, a UK company focused on developing, owning and operating shared passive wireless infrastructure in selected growth markets”.

The tower portfolio in Airtel Tanzania comprises about 1,400 towers that form part of the group’s wireless telecommunications infrastructure network. As per the terms of the deal, the group’s subsidiary Airtel Tanzania will continue to develop, maintain and operate its equipment on the towers under a separate lease arrangement with the purchaser. Airtel said the consideration for the transaction is about $175 million of which approximately $157.5 million is payable on the first closing date (expected to take place in the H2 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, it added. “Around $60 million from the proceeds will be used to invest in network and sales infrastructure in Tanzania and for distribution to Tanzania.