The deal is described as the largest strategic divestment of the Group’s tower portfolio as it focuses on an asset-light business model and its core subscriber-facing operations as reported in a statement released to the media.
The tower portfolio in Tanzania has about 1, 400 towers that form part of the Group’s wireless telecommunications network.
“Airtel Africa announces the sale of towers portfolio belonging to Airtel Tanzania to a joint venture company owned by a wholly-owned subsidiary of SBA Communications Corporation, a 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.”An excerpt from the Company’s Statement
The balance, the company said is payable in installments on the completion of the transfer of any remaining towers to the purchaser.
“Around US$60 million of the proceeds will be used to invest in network and sales infrastructure in Tanzania and for the distribution to the government of Tanzania. The rest of the amount will be used to reduce debt at the group level.”An excerpt from the Company’s Statement