Multinational telecom and mobile service company Airtel Africa plc has recently announced the sale of its Tanzanian tower portfolio to a joint venture enterprise of SBA Communications Corp. as well as Paradigm Infrastructure Ltd. for around USD 175 million.

For the uninitiated, SBA Communications is a leading independent operator and owner of wireless communications infrastructure while Paradigm Infrastructure is a U.K.-based company that focuses on owning, developing, and operating shared wireless infrastructure in select growth markets. Among the two, SBA will have the majority stake, cited sources close to the matter.

Out of the total consideration, USD 157.5 million is reportedly payable on the first closing date, which is expected to be in the second half of the companies’ current financial year, while the remaining amount is to be paid in installments on completion of the transfer of any additional towers.

If reports are to be believed, over USD 60 million of the sales proceeds are to be used in network & sales infrastructure investments, and for payment to the government of Tanzania, according to the settlement records in Airtel Africa IPO Prospectus published in June 2019.

Airtel Tanzania’s tower portfolio is comprised of about 1,400 towers which are a part of the Group's wireless telecom infrastructure network.

As per the deal, Airtel Tanzania plc will continue to maintain, operate and develop its equipment on the towers under a lease arrangement with the purchaser.

Besides, Airtel Africa has stated that the strategic development would enable it to adapt an asset-light business model, and focus on core subscriber-centric operations, while also reducing debt at the Group level.

In other news, Airtel along with other major telecom companies in India, such as VI and Reliance Jio have received permission from the Department of Telecommunications to conduct 5G trials in rural areas of the country, according to credible sources.

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https://www.moneycontrol.com/news/business/airtel-africa-sells-tower-portfolio-for-175-million-to-sba-communications-paradigm-6978171.html