Helios Towers plc, the independent telecommunications infrastructure company, has signed agreements with Airtel Africa Group to buy 1,424 towers in Madagascar and Malawi for US$119mn
Additionally, Helios Towers has entered into MoU arrangements for the potential acquisition of its passive infrastructure assets in Chad and Gabon, all subject to required regulatory approvals.
The transactions comprise four separate agreements.
• Two separate agreements, one for each market, for the acquisition of Airtel Africa’s passive infrastructure companies in Madagascar and Malawi for a total expected consideration of US$108mn. These acquisitions are both anticipated to close in or around Q4 2021.
• In each of Chad and Gabon, the Group has entered into exclusive memorandum of understanding arrangements and, subject to obtaining a passive infrastructure licence in each jurisdiction, is expected to complete the acquisition of Airtel Africa’s passive infrastructure assets in those countries in or around Q1 2022.
The transactions assets are expected to generate aggregated annualised revenues of US$89mn and Adjusted EBITDA of US$27mn, with further growth anticipated through 315 committed build to suits (BTS) and colocation lease-up.
The total consideration for the acquisition of the passive infrastructure companies in Madagascar and Malawi is expected to be US$108mn, which represents an enterprise value of US$124mn including estimated transaction costs and capitalised ground leases for the Group. These assets are expected to generate revenues of US$38mn and Adjusted EBITDA of US$13mn in the first full year of ownership.
In addition, Helios Towers has received a BTS commitment from Airtel Africa representing an additional 195 sites over the three years upon completion for which a further US$11mn of deferred consideration and US$24mn growth capex are expected to be invested by the Group.
