Airtel Africa has announced the sale of its tower portfolio which is part of Airtel Tanzania for about $175 million, as the company moves to focus on an asset-light business model.
The tower portfolio in Airtel Tanzania comprises about 1,400 towers that form part of the group’s wireless telecommunications infrastructure network.
In a statement, Airtel Africa announced the sale of the tower portfolio belonging to Airtel Tanzania to a joint venture company owned by a wholly-owned subsidiary of SBA Communications Corporation, a global independent owner and operator of wireless communications infrastructure, as majority owner.
The telco also sold to Paradigm Infrastructure, a UK company focused on developing, owning and operating shared passive wireless infrastructure.
According to the terms of the deal, the group’s subsidiary Airtel Tanzania will continue to develop, maintain and operate its equipment on the towers under a separate lease arrangement with the purchaser.
“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,” the statement said.
Airtel Africa is a provider of telecommunications and mobile money services with a presence in 14 countries across the continent.