Bharti Airtel sold its Tanzanian tower operations for about $175 million (Rs1313 crore) in a bid to aim at asset-light and core subscriber-facing operations, with few of the funds being used to pare loan at the consolidated level .
The recent offloading of tower assets in African countries and a stake sale in phone money business to Mastercard and TPG has let Airtel raise around $725 million yet.
Airtel Africa – “…announces the sale of the tower portfolio belonging to Airtel Tanzania to a joint venture company owned by a wholly-owned subsidiary of SBA Communications Corporation, a leading global independent owner and operator of wireless communications infrastructure, as majority owner, and by Paradigm Infrastructure Limited, a UK company focused on developing, owning and operating shared passive wireless infrastructure in selected growth markets,” mentioned India’s second largest telco .
This follows a series of other tower sales by the telco and these infusions will let the telco recharge its costs for its battle with Reliance Jio Infocomm (Jio), and pay dues. Airtel’s consolidated net debt at March will now stand at Rs1.5 lakh crore.
“The consideration for the transaction is approximately $175 million of which approximately $157.5million is payable on the first closing date (which is expected to take place in the second half of the Group’s current financial year) with the balance payable in instalments upon the completion of the transfer of any remaining towers to the purchaser,” claimed the Wednesday’s statement.
Airtel said that its Tanzania piece will continue to develop, manage and work its equipment on the towers under a separate lease arrangement with the buyer.