Telecom

Malawi: Airtel Africa sells telecom towers in continuation of asset monetization program

Monday, 28 March 2022 15:49
Malawi: Airtel Africa sells telecom towers in continuation of asset monetization program

(Ecofin Agency) - Airtel Africa is pursuing its asset monetization program launched in early 2021. The telecom company, which has already ceded part of Airtel Money and its telecommunication towers in Madagascar, is now selling assets in Malawi. It is expected to do the same in other African markets.

Airtel Africa, the African arm of Indian telecom group Bharti Airtel, finalized the sale of Malawi Towers Limited, a Malawi-based telecom tower company last March 25. Thanks to that transaction, the buyer, Helios Towers PLC, has added 723 telecom towers to its portfolio for an estimated gross consideration of MWK45.1 billion (US$55 million).

Under the terms of the sale, Airtel Malawi will continue to develop, maintain and operate the sold towers in the framework of a 12-year lease agreement the two firms signed separately. The telecom infrastructures are expected to generate US$23 million and adjusted EBITDA of US$8 million for Helios Tower in the first full year of ownership, "with further growth anticipated through 60 committed build-to-suit over the next three years and colocation lease-up". 

Helios Towers announced, in a press release, that  20% of the gross consideration was funded by Old Mutual Infrastructure Investment Trust Fund, a Malawian fund. Therefore, the operation complies with the "20% local shareholding" rule in Malawi’s telecom infrastructure licensing requirements.  

Airtel Africa plans to use the proceeds from the sale of the telecom infrastructures to reduce its external debt, which stood at US$3.1 billion in the first half of 2021, down from US$3.5 billion a year earlier.

The transaction makes Helios Towers PLC the largest independent telecommunications infrastructure company in Malawi. The company continues to build its geographical footprint as part of its strategy to expand operations to at least eight markets by 2025. 

The tower sale falls within the framework of the asset monetization operation launched by Airtel Africa in 2021. In March of that year, the company initiated negotiations with Helios Towers PLC to sell 2,227 telecom towers in several African countries including Madagascar, Malawi, Chad, and Gabon. In November 2021, it completed the sale of its Madagascar telecom towers to Helios Towers for $51.7 million.

Isaac K. Kassouwi





 
Finance


 
Public Management


Ecofin Agency covers the news from 9 business sectors in Africa: Public management, Finance, ICT, Agribusiness, Electricity, Mining, Oil and Gas, Comms and Laws. Ecofin Agency is also creating and management specialized medias, in paper and on the web/social networks, for institutions or African publishers.

AGENCE ECOFIN

Mediamania Sarl
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11

REDACTION
redaction@agenceecofin.com

Public management
Aaron AKINOCHO
Borgia KOBRI
Moutiou ADJIBI

Finance
Idriss LINGE
Walid KEFI
Chamberline MOKO

Agribusiness
Espoir OLODO

Electricity
Gwladys JOHNSON

Oil and Gas
Olivier DE SOUZA

Mining
Louis-Nino KANSOUN

ITC 
Muriel EDJO

Comms
Servan AHOUGNON

Cameroon
Brice R. MBODIAM
Sylvain ANDZONGO
Monique MAY
Julienne Rose SENDE

Togo
Fiacre E. KAKPO
Waliyullah TAJUDEEN
Séna AKODA

Niger
Sandrine GAINGNE

Gabon
Stephane BILLE
Pierre-Celestin ATANGANA

Desk
Stéphane ALIDJINOU
Souha TOURE
Vahid CODJIA
Diane ZODEHOUGAN
Hikmatu BILALI

Translation
Schadrac AKINOCHO
Mouka MEZONLIN
Firmine AÏZAN



Digital
Omar SOKHNA
Mamadou DIOP
Bacary MANE
Abdel Razak MOULIOM

Digital Marketing
Jérémie FLAUX
Geraud ACHI
Jean Christian BERNARD
Franck FOUTE

Web publishing
Bakoly RAHARISOA
Rina RAMANANDRAISOA
Hasina RAJEMISON

Development
Dominique FLAUX

 


 
REGIE COMMERCIALE
AGENCE ECOFIN
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11
Fax: +41 22 301 96 10

Benjamin FLAUX
bf@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72

Voir page 
Nos services
 

 










 



Ecofin Agency is a news agency for economic and sectorial information. It was created in 2010 and it website was launched in June 2011.

Please publish modules in offcanvas position.