Airtel Africa has announced the first
closing of the transaction to sell its
telecommunications tower assets in
Tanzania to a joint venture company
for N76 trillion ($176.1 million).

According to a report, the company said the buyers consisted of
a wholly-owned subsidiary of SBA
Communications Corporation — a
leading global independent owner
and operator of wireless communications infrastructure, as majority
owner; and Paradigm Infrastructure
Limited — a UK company focused
on developing, owning and operating
shared passive wireless infrastructure in selected growth markets.

The statement read in part, “The
gross consideration for the transaction will be $176.1 million. Under
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,
largely made in local currencies,
with the purchaser.

“With first closing, approximately $159 million of the proceeds for
the transaction has now been paid,
with the balance payable in instalments upon the completion of the
transfer of remaining towers to the

“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.”

It added that the balance of the
proceeds would be used to reduce
debt at the group level.

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