Airtel Africa has closed 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 and UK-based Paradigm Infrastructure Limited.
SBA Communications is a leading global independent owner and operator of wireless communications infrastructure, as majority owner.
In a press release, the telecommunication company said 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 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. The balance of the proceeds will be used to reduce debt at Group level.