Airtel sells towers in 5 African countries for $1.3 bn

The country’s largest service provider, Bharti Airtel, has completed the sale of mobile towers in five countries in Africa for $1.3 billion (Rs 8,237.5 crore) to cut debt.

The telecom company is also in the process of selling tower assets in six other countries in Africa.

“As on date, we have completed the sale transactions in five countries while the agreements have lapsed in two. For the balance six, the process is on and we hope to have the finality in the coming few months,” the company said in a filing to the BSE.

DEBT REDUCTION

• The total proceeds, of over $1.3 billion, from transactions would be utilised for reducing debt
  

 

Airtel is in the process of divesting 15,000 towers to different companies in 13 countries in Africa
 

Its Africa business is running into losses since the company entered Africa in 2010

The total proceeds from transactions  would be  used for reducing debt. With operations across 17 African countries, Airtel is in the process of divesting 15,000 towers to different companies in 13 countries in Africa.

Last month, Bharti Airtel terminated its agreement with Helios Towers Africa (HTA) for sale of tower assets in Tanzania and Chad signed last year.

In July last year, the company had announced it would divest 3,100 telecom tower assets to HTA for sale in four countries, Democratic Republic of Congo, Republic of Congo, Chad and Tanzania.

The divestment would expand HTA’s coverage in Africa to 7,800 owned towers.

Both decided to terminate the deal in Tanzania and Chad which had around 800 towers while the deal for Democratic Republic of Congo and Republic of Congo remained.

Bharti Airtel’s Africa business is running into losses since the company entered the continent in 2010. For the quarter ended March, its revenue from Africa declined 13 per cent on year-on-year basis while net loss widened to $183 million.

Net debt at the end of financial year 2014-15 stood at over $10.67 billion.