By Aduragbemi Omiyale
The tower assets of Airtel Africa Plc in Tanzania have been sold by the company for $176.1 million, a notice to the Nigerian Exchange (NGX) Limited on Wednesday has confirmed.
A part of the money would be used to offset some of the debts of the organisation and about $60 million would be used to invest in network and sales infrastructure in Tanzania and for distribution to the government in line with what was agreed.
Airtel Africa disclosed that the full payment has not been made by the new owners as only $159 million has been received, with the expected upon the completion of the transfer of the remaining towers.
The notice stated that the tower assets were sold 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.
“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 assets in 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 gross consideration for the transaction will be $176.1 million.
“Under the terms of the transaction, Airtel Africa’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 $159 million 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 $60 million 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,” the full statement read.
Adedapo Adesanya