Airtel Africa Sells Tower Assets in Tanzania for $176.1m

Airtel Africa Sells Tower Assets in Tanzania for $176.1m

Airtel Africa today announces the first closing of 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.

The gross consideration for the transaction is $176.1 million, according to the statement submitted to the Nigerian Exchange on Wednesday.

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 the first closing, approximately $159 million of the proceeds for the transaction has now been paid, Airtel Africa said.

The balance payable in instalments upon the completion of the transfer of remaining towers to the Purchaser, it added.

Airtel Africa said around $60 million from the proceeds will be used to invest in network and sales infrastructure in Tanzania and for distribution to the Government of Tanzania.

This is as per the settlement described in the Airtel Africa initial public offer (IPO) prospectus document published in June 2019.

The balance of the proceeds will be used to reduce debt at the Group level, Airtel Africa told the Nigerian Exchange and investing public. # Airtel Africa Sells Tower Assets in Tanzania for $176.1m

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