Airtel Africa has sold its 723 towers in Malawi to Helios Towers, an independent telecommunications infrastructure company, for US$55 million (about K45.1 billion).
The towers were owned under Airtel’s passive infrastructure company, Malawi Towers Limited. According to a statement published on Helios’ website on 25 March, 2022, Helios has completed the acquisition of Malawi Towers.
“The gross consideration for the transaction will be US$55 million, of which 20% is funded by Old Mutual Infrastructure Investment Trust Fund, representing a local Malawian shareholding of 20%, in-line with the local telecommunications infrastructure licence requirements previously disclosed,” reads part of the statement.
Helios Towers and Airtel Africa have also entered into a 12-year service agreement on the acquired assets which are expected to deliver revenues of US$23 million (about K19 billion).
The London-based telecommunications firm said in its statement that growth is anticipated through 60 committed build-to-suits over the next three years and a colocation lease-up.
The sale of Airtel Africa’s tower company in Malawi was first announced in March last year. In February this year, the companies said they were progressing on the sale.
Helios Towers is a leading independent telecommunications infrastructure company which builds, owns and operates telecom passive infrastructure, providing services to mobile network operators.
Helios Towers owns and operates telecommunication tower sites in Tanzania, Democratic Republic of Congo, Congo Brazzaville, Ghana, South Africa, Senegal and Madagascar. Following recent acquisition agreements and subject to regulatory approval, Helios Towers expects to establish a presence in three new markets across Africa and the Middle-East. Including these acquisitions and committed BTS, the group’s total site count is expected to increase from over 10,000 towers to over 14,000.