Airtel Africa has announced the first closing of the transaction to sell its telecommunications tower assets in Tanzania to a joint venture company for N76tn ($176.1m).
In a statement obtained from the Nigerian Exchange, the company said the buyers consisted of a wholly-owned subsidiary of SBA Communications Corporation — a leading global independent owner and operator of wireless communications infrastructure, as majority owner; and Paradigm Infrastructure Limited — a UK company focused on developing, owning and operating shared passive wireless infrastructure in selected growth markets.
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The statement read in part, “The gross consideration for the transaction will be $176.1m. 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 $159m 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 $60m 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.”
It added that the balance of the proceeds would be used to reduce debt at the group level.
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