Airtel and American Tower Corporation have sealed an agreement for the sale of over 4,800 of Airtel’s communications towers in Nigeria.
According to the agreement, Airtel will be the anchor tenant on the portfolio under a lease with a ten-year initial term.
Under the plan Airtel will focus on its core business and customers, enable it to deleverage through debt reduction and will significantly reduce its on-going capital expenditures on passive infrastructure in Nigeria.
According to the companies, the expected closure date for the acquisition will be during the first half of 2015, subject to customary closing conditions and regulatory approval. Both parties have not disclosed the financial details of the transaction.
Airtel Africa CEO Christian de Faria says “the agreement, which is part of a stated philosophy of promoting infrastructure sharing, will provide cost efficiencies and at the same time allows the company to sharpen its focus on the customer. Airtel earlier reached agreements with Eaton and Helios to sell towers in another ten countries in Africa.”