By Financescape
Airtel Africa a leading provider of telecommunications and mobile money services which offers an integrated suite of telecommunications solutions to its subscribers, including mobile voice and data services as well as mobile money services both nationally and internationally has set sale of tower portfolio in Tanzania for $175 million.
A joint venture of SBA Communications Corporation and Paradigm Infrastructure Limited acquired the infrastructure assets. SBA Communications Corporation who is the major owner of the infrastructure asset is a leading global independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS), and small cells while Paradigm Infrastructure Limited is a UK company focused on developing, owning and operating shared passive wireless infrastructure in selected growth markets.
According to a release by Airtel Africa Plc, The tower sales in Tanzania will be used to reduce the company debt portfolio at Group level while it focusses on an asset-light business model and on its core subscriber-facing operations and $60 million from the proceeds will be used to invest in network and sales infrastructure in Tanzania.
Airtel Tanzania plc a subsidiary of the Group noted that it will continue to develop, maintain and operate its equipment on the towers under a separate lease arrangement with the Purchaser adding that the Transaction is the latest strategic divestment of the Group’s tower portfolio.
