Bharti Airtel's African arm completes $176 mn tower sale deal in Tanzania

Bharti Airtel’s African arm has completed the first part of its $176 million telecom tower sale deal in Tanzania. The sale is part of its overall deleveraging strategy, which netted over $800 million through fund raise and asset sales in 2021.

Airtel Africa’s tower assets in Tanzania have been acquired by a joint venture company owned by SBA Communications Corporation and Paradigm Infrastructure Ltd.

Under the terms of the transaction, Airtel’s business unit in Tanzania will continue to develop, maintain and operate its equipment on the towers under separate lease agreements.

“With the first closing approximately $159 million of the proceeds of the transaction has now been paid with the balance installments upon the completion of transfer of remaining towers to the purchaser,” the company said in a press release. Around $60 million from the proceeds will be used to invest in network and sales infrastructure in Tanzania and for distribution to the Tanzanian government according to a settlement agreement. The balance amount will be used to reduce debt at the group level.

Airtel operates in 14 African countries and provides mobile service and mobile money services in the continent. The African business contributes to around 30 per cent of the company’s consolidated revenue. As of March 2021, it had 118 million customers in Africa.