Bharti Airtel to sell 950 towers in Congo

Bharti has about 14,000 towers in Africa, of which it has divested 8,300 for nearly $1.7 bn

Bharti Airtel has entered into an agreement with Helios Towers Africa (HTA) for divestment of about 950 towers in the Democratic Republic of Congo (DRC).

The deal will help Airtel deleverage through debt reduction and reduced capital expenditure, though the size was not disclosed.

Bharti has 14,000 towers in Africa approximately, of which it has divested 8,300 for nearly $1.7 billion (Rs 11,318 crore).

The divestment also includes towers currently under construction in the DRC, according to the company. Airtel will have full access to towers from HTA under a long-term lease contract.

It said the agreement will allow Airtel to focus on its core business and customers. The deal will significantly reduce Airtel’s ongoing capital expenditure on passive infrastructure and also mitigate the proliferation of towers through enhanced sharing.

The agreement is subject to statutory and regulatory approvals.

Christian De Faria, executive chairman, Bharti Airtel International Netherlands (BAIN), said, “The agreement is in line with our stated philosophy of divesting passive infrastructure and promoting sharing of towers to enhance operational efficiencies that will further the growth of telecom services. Airtel remains committed to DRC and will continue to invest in its operations and serve customers with world-class services.”

In March this year, BAIN, the subsidiary of Airtel had entered into an agreement with American Tower Corporation (ATC), through its subsidiary, Airtel Tanzania, to sell 1,350 towers in the latter country. Analysts estimate the deal size to be $180 million.

ATC would acquire around 100 additional sites. Airtel will be anchor tenant on the portfolio under a lease, with a 10-year initial term.

Tanzania is the ninth country where it has undertaken divestment of passive infrastructure. In all, Bharti is expected to raise around $2 billion from the sale of tower assets alone. Bharti has already done one transaction with ATC for its towers in Nigeria.