Airtel Africa, a provider of telecommunications and mobile money services, has announced the first closing of the transaction to sell its telecommunications tower assets in Tanzania to a joint venture company (the ‘Purchaser’)
The joint venture is 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.
According to Airtel Africa, the gross consideration for the transaction will be US$176.1mn. Under the terms of the transaction, the company's subsidiary in Tanzania will continue to develop, maintain and operate its equipment on the towers under separate lease arrangements, largely made in local currencies, with the Purchaser.
With first closing, approximately US$159mn of the proceeds for the transaction has now been paid, with the balance payable in instalments upon the completion of the transfer of remaining towers to the Purchaser. Around US$60mn from the proceeds will be used to invest in network and sales infrastructure in Tanzania and for distribution to the Government of Tanzania, as per the settlement described in the Airtel Africa IPO Prospectus document published in June 2019. The balance of the proceeds will be used to reduce debt at Group level.
Airtel Africa has a presence in 14 countries across the continent.