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Airtel announces agreement to sell its towers in Madagascar and Malawi

Airtel Africa has agreed to sell its telecommunications tower companies in Madagascar and Malawi to Helios Towers plc.

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Raghunath Mandava, MD and CEO of Airtel Africa, Airtel Africa receives NCC approval to acquire 10 MHz spectrum for $94 million

Airtel Africa Plc. has announced the signing of the agreement to sell its tower companies in Madagascar and Malawi to Helios Towers Plc.

The telecom giant announced the agreement in a statement dated 23 March 2021, sent to the Nigerian Stock Exchange.

Airtel’s owns 1,229 towers in these two markets and they form part of the company’s telecommunications infrastructure network. The value of these assets as of 31st March 2020 was $93.7 million and the assets exclusively generated a year to 31 March 2020 profit before tax of $3.3 million.

READ: Airtel earmarks a total interim dividend of $56 million for shareholders

Helios Towers Plc is a leading independent telecommunications infrastructure company in Africa with major presence in Ghana, Congo B, DRC, Tanzania, Senegal and South Africa.

The agreed consideration for the transaction is expected to be approximately $108m and the transaction is expected to be closed in or around October to December 2021.

Details of the transaction

  • Two separate agreements were made for the two jurisdictions and are subject to customary closing conditions which include regulatory approval.
  • Until completion of the transactions, Airtel will continue to develop, maintain and operate their equipment in the towers under a lease agreement with Helios.
  • The lease agreement will be separate from the sale agreement and payments will be made in local currencies by Airtel’s operating entities in the jurisdiction.
  • Airtel will build additional 195 sites across Madagascar and Malawi over the 3 years following completion of the transaction for a further payment of $11 million.

READ: Airtel’s reduced PAT position doesn’t tell the whole story

Besides the agreement to sell the towers in Madagascar and Malawi to Helios, Airtel also entered into an exclusive Memorandum of Understanding for the potential sale of its 1,000 tower assets in Chad and Gabon. It is expected that the transaction would be treated in a similar fashion to the agreement for the sale of Madagascar and Malawi tower assets. The proposed sale of the assets in the two countries will not be inter-conditional and are expected to close before the end of 2022.

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Airtel disclosed through the press statement that proceeds from the transactions and the proposed transaction will be used to reduce its external debt and invest in network and sales infrastructure in its respective operating countries.

READ: 6 managers, 5 name changes, the journey from Econet to Airtel

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The CEO of Airtel Africa, Raghunath Mandava commenting on the transaction said that the Group will continue to demonstrate strong execution of its asset monetisation programme and that they look forward to expanding their partnership with Helios with the new leases, as they work together on improving mobile connectivity and infrastructure across Africa.

He also stated that the transactions will help to improve the Group’s debt and increase its tenor through the long leases entered, which are largely payable in local currency by the operating entities while reducing the foreign currency debt of the Group.

Stanbic 728 x 90

Fikayo is a first class graduate of economics with experience in investor relations, strategy and research. She is also a member of the Institute of Chartered Accountants of Nigeria (ICAN). She has interest in macro and microeconomics, research, finance and strategy.

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Business News

NCC discloses application requirements for Proof of Concept trial license

The NCC stated that it had been inundated with requests related to trial frequencies for the purpose of verification of certain concepts.

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NCC Building, MTN, Glo, Airtel, 9mobile, NCC, Acquisition, Teleology

The National Communications Commission (NCC) has released application requirements for trial frequencies in certain spectrum brands under the Proof of Concept (POC) Trial license.

This was disclosed on Wednesday, April 14, 2021, in a statement signed by the Director of Public Affairs, Dr Ikechukwu Adinde; and made public on the Commission’s verified Twitter account, @NgComCommission.

The NCC stated that it had been inundated with requests related to trial frequencies for the purpose of verification of certain concepts.

READ: USSD service disruption: MTN to use Flutterwave, Opay, Kuda, other payment channels

The requirements listed by the NCC include:

  • The PoC trial license application must only be granted to Original Equipment Manufacturers(OEMS)/Vendors, or operators in conjunction with their Original Equipment Manufacturers.
  • PoC trial shall not exceed a period of three months effective from the date of approval.
  • Equipment for Proof of Concept must be ‘Type-approved’ by the Commission.
  • Appropriate Spectrum fees must be paid in accordance with the NCC’s regulations.

In case you missed it

Nairametrics reported that Nigerian telco giant MTN recently announced its acquisition of an additional 10MHZ spectrum in the 800MHz band from Intercellular Nigeria Limited.

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Billionaire Watch

Elon Musk gains $19bn in 3 days, gap with Jeff Bezos shrinks to $4bn

Elon Musk’s wealth jumped from $175bn as of last week Saturday to $194bn this morning.

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Elon Musk, Tesla, SEC, Stock, Twitter, COVID-19: Tesla’s Elon Musk to produce ventilators as fast-spread of disease lingers

Elon Musk has witnessed an eventful past three days as his wealth leapt from $175 billion (as of last week Saturday) to $194 billion this morning.

The eccentric businessman has now closed the gap between himself and Jeff Bezos to just about $4bn according to Bloomberg Billionaires Index.

Nairametrics is quickly going to highlight the reasons for the recent massive surge of dollars for Elon Musk.

Tesla share price increase

According to Market Watch, Tesla stocks ended yesterday at their highest value in 8 weeks. The electric car company stock price increased by 8.6% and sold at $762.32.

According to Motley Fool, the reason for this increase is a generally upbeat mood in the market about growth stocks. It also believed the increase was driven by optimistic comments about Tesla stocks by trusted analysts.

A surge in Tesla car sales

According to Nairametrics finance department, Tesla delivery of new cars in the last 3 months of the year exceeded Wall Street expectations. Tesla delivered 184,800 new cars from January to March. This number exceeded Wall Street expectations pegged at 177,000 cars.

What you should know

  • Jeff Bezos only gained $1bn in the last 3 days, the same duration of days Elon Musk gained $19bn according to the Bloomberg Billionaire’s index.
  • Tesla is currently being portrayed and compared to Apple. The EV carmakers are modelling their vehicles and branding them to fit the “Apple of electric cars” persona. This was made public by Canaccord Genuity analyst Jed Dorsheimer. This also played a role in the surge of stock prices.
  • Tesla is currently the most valuable car company in the world with a market capitalization of $593.8 billion according to Yahoo Finance.

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