Disclaimer: We may earn a commission if you make any purchase by clicking our links. Please see our detailed guide here.

Follow us on:

Google News

Airtel Africa Announced the Sale of Tanzanian Arm’s Tower Biz for $175 mn.

Meet the voice behind Indo-Asian News Service (IANS), a storyteller navigating the currents of global events with precision and depth. Crafting narratives that bridge cultures, IANS brings you the pulse of the world in every word

Join the Opinion Leaders Network

Join the Techgenyz Opinion Leaders Network today and become part of a vibrant community of change-makers. Together, we can create a brighter future by shaping opinions, driving conversations, and transforming ideas into reality.

Airtel Africa on Wednesday announced the sale of the tower portfolio belonging to Airtel Tanzania to a joint venture company of SBA Communications Corporation and Paradigm Infrastructure for $175 million.

SBA Communications Corporation is a global independent owner and operator of wireless communications infrastructure. In contrast, paradigm infrastructure is a UK company focused on developing, owning, and operating shared passive wireless infrastructure in selected growth markets.

The tower portfolio in Airtel Tanzania comprises around 1,400 towers which form part of the Group’s wireless telecommunications infrastructure network. Under the terms of the transaction, the Group’s subsidiary Airtel Tanzania plc will continue to develop, maintain and operate its equipment on the towers under a separate lease arrangement with the purchaser, said a company statement.

It added that the transaction is the latest strategic divestment of the Group’s tower portfolio as it focuses on an asset-light business model and on its core subscriber-facing operations.

Out of the total consideration of $175 million for the transaction, around $157.5 million is payable on the first closing date, which is expected to take place in the second half of the Group’s current financial year, with the balance payable in installments upon the completion of the transfer of any 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 said.

The balance of the proceeds will be used to reduce debt at group level, said the company.


Partner With Us

Digital advertising offers a way for your business to reach out and make much-needed connections with your audience in a meaningful way. Advertising on Techgenyz will help you build brand awareness, increase website traffic, generate qualified leads, and grow your business.

Power Your Business

Solutions you need to super charge your business and drive growth

More from this topic