This archive report was first published on 5 January 2022.
On January 5, 2022, Airtel Africa announced the completion of a transaction to sell its telecommunications tower assets in Tanzania to a joint venture company owned by SBA Communications Corporation and Paradigm Infrastructure Limited.
The sale, valued at $176.1 million, marks a significant milestone for Airtel Africa as it continues to optimize its operations and focus on growth initiatives.
According to 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 with the purchaser.
Approximately $159 million of the proceeds from the sale has been paid, with the balance payable in instalments upon the completion of the transfer of remaining towers to the purchaser.
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, 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.
Airtel Africa is a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa.
