Two months after Airtel Africa announced the sale of its tower assets in Tanzania to SBA Communications Corporation, it has made progress on another asset sale.
Airtel Africa plc is a multinational company that provides telecommunications and mobile money services in 14 countries in Africa, primarily in East, Central, and West Africa. Airtel Africa is majority-owned by the Indian communication services company Bharti Airtel.
In 2020, Airtel Africa CEO, Raghunath Mandava, outlined plans to sell approximately 4,500 towers in five countries: Chad, Gabon, Madagascar, Malawi, and Tanzania.
Airtel Africa says it has signed agreements with Helios Towers Plc (an independent telecoms infrastructure company in Africa) for the potential sale of its tower assets in Chad and Gabon.
The MOU for the potential sale of its tower assets in Chad was signed in March 2021 and expired in February 2022. Both companies have admitted that the MOU will not be renewed and details surrounding this decision were withheld.
However, both companies extended the memorandum of understanding arrangement for the sale of assets in Gabon and the sale of Airtel’s passive infrastructure operating company in Malawi is progressing.
Airtel insists that the completion of the sale arrangements is still subject to Helios Towers obtaining a passive infrastructure license. Both companies are looking to close the deal in the second half of 2022.
Airtel is one of Africa’s telecommunication giants has recorded significant losses because of low data prices and high competition among telcos. There is also the considerable cost of the infrastructure associated with running a telecoms business.
At the end of 2021, Airtel’s customer base grew by 5.4% to reach 122.7 million, with increased penetration across data and mobile money. The former saw growth of 10.9%, while the latter recorded an increase of 19%. The company reported a 25.2% growth in revenue with double-digit growth across all operating regions, for its half-year results. For the second quarter, reported revenue growth came in at 20.3%.
Airtel’s bid to sell is aimed at reducing the company’s $3.5 billion debt in preparation for upcoming bond repayments.
In the stock market, Shares in Airtel Africa were up 2.6% at 142.48pence each on 21st February 2022, in London. Helios Towers was trading 0.4% lower at 140.01 pence each.