(Ecofin Agency) - Mobile operator Free Senegal sold more than 1,200 telecom sites in its passive infrastructure to UK-based telco Helios Towers. The transaction was agreed on at €160 million.

“This agreement is aligned perfectly with our 2025 strategic ambitions, broadening our footprint within the African towers infrastructure market. We are acquiring a market-leading independent position in Senegal with long-term contracted revenues and a clear path to value creation,” said Kash Pandya, Chief Executive of Helios Towers. The conclusion of this agreement, which is expected to make Helios the leader in the telecom network infrastructure market in Senegal, is scheduled for Q1 2021, subject to approval from the various regulatory authorities.

The newly acquired assets are expected to generate run-rate revenues of €32 million and a run-rate adjusted EBITDA of €16 million, according to Helios Towers. The company believes in its forecasts based on market data that revealed a young, growing, and increasingly urbanized population with strong GDP growth, as well as a strong Euro-pegged environment. Helios sees this as an opportunity to stimulate demand for mobile communications and subsequently the infrastructure supporting that demand.

Following the selling agreement signed on August 12, Free also signed a 15-year service deal with its partner for the provision of hosting and energy services for the sites acquired and sites to be built in the future.

Mamadou Mbengue, Free Sénégal's CEO, explained that this collaboration will enable Free Senegal to further extend its mobile network coverage in the country.