Bharti Airtel's Africa-focused unit has sold its Tanzanian tower operations in a deal estimated to be around $175 million. The sale of its tower operations comes as the company switch its focus to its core subscription services like voice and data packages. The tower has about 1,400 towers that form part of the Group's wireless telecommunications infrastructure network.
Airtel Africa will give part of the proceeds to the Tanzania government due to the terms of its public listing in 2019. At the same time, the Group will use some of the proceeds to reduce its debt. Airtel Africa provides telecommunications and mobile money services and has a presence in 14 countries across Africa.
"The sale of the tower portfolio belonging to Airtel 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". Airtel Africa on the deal.
Airtel Tanzania will continue developing, maintaining, and operating its equipment on the towers under a separate lease arrangement with the purchaser, thanks to the terms of the deal.
The deal, which is in the region of USD 175 million, will see the Group receive a sum of USD 157.5 million, which is payable on the first closing date. This is expected to take place in the second half of the Group's current financial year.
Tanzania in focus
GDP: $63.177 billion compared to Benin $14,391 billion in 2019
Population: 58,005,463 compared to Benin 11,801,151 in 2019
GDP per capita: $1,112 compared to Benin $1,219 in 2019