Airtel Africa has finalized the sale of its Madagascar telecom towers to Helios Towers for $ 51.7 million
November 4th 2021
Airtel Africa’s asset monetization program launched at the start of the year is gradually showing success. The telecoms company, which has already managed to sell some shares in Airtel Money, is also making progress in selling part of its fleet of telecom towers.
Airtel Africa, the African branch of the Indian telecoms group Bharti Airtel, announced on Wednesday (November 3rd) the finalization of the sale transaction of its telecommunications tower company in Madagascar. Through this operation, a total of 490 telecom towers are added to the fleet of Helios Towers PLC, the purchaser. The gross consideration for this transaction is estimated at $ 51.7 million.
Under the terms of the sale, Airtel Africa will continue to develop, maintain and operate its equipment on towers transferred under separate leases, largely in local currency. Helios Towers PLC indicated that the two companies have signed a 12-year service agreement for this purpose.
The assets acquired, as per previous communications, are expected to generate Adjusted EBITDA of $ 5 million in the first full year of ownership, with further growth anticipated from 135 tower constructions planned for the next three years and leasing. .
It was last March that Airtel Africa entered into negotiations with Helios Towers PLC for the sale of its telecom towers in several African countries, in particular in Madagascar, Malawi, Chad and Gabon. An operation is part of its asset monetization program launched at the start of the year which also includes the sale of minority stakes in Airtel Money.
For Airtel Africa, the proceeds from the sale will be used to reduce the group’s external debt, which stood at $ 3.1 billion in the first half of 2021, down from the $ 3.5 billion recorded in the first half of 2020. The money will also make it possible to invest in network and sales infrastructure in Madagascar.
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