Airtel today announced to sell its 3,100 telecom towers in four African countries to Helios Towers Africa for an undisclosed sum.
“It is an important step towards the consolidation of tower assets across Africa that will drive industry-wide cost efficiency through infrastructure sharing,” Bharti Airtel International Netherlands BV Chairman Manoj Kohli said in a statement. Under the agreement signed with Helios Towers Africa (HTA), Airtel has divest approximately 3,100 towers to HTA and will have access to these towers under a long term lease contract.
“HTA is proud to be chosen by Airtel as its partner for the ownership and management of its existing infrastructure,” HTA Chief Executive Officer Chuck Green said. Airtel is now left with about 12,000 own telecom towers in Africa. With this deal, HTA’s coverage in Africa now expand to 7,800 towers. Though Airtel did not disclose the monetary value of this deal but said this will help company deleverage through debt reduction and reduced ongoing capital expenditure.
The net debt of the company at end of March 31, 2014 stood at Rs 60,541.6 crore. Under the agreement, tower operations-related personnel will also be transferred from Airtel to HTA.
