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Airtel Africa PLC and Helios Towers PLC on Friday said that they closed the sale of Airtel Africa's telecommunications tower company in Malawi to Helios Tower.
The sale of Airtel Africa's tower company in Malawi was first announced in March of last year. In February of this year, the companies both noted that they were progressing on the sale.
London-based and Africa-focused telecommunications provider Airtel Africa said that the consideration of the deal is $54.7 million.
Helios Towers, separately, added that it entered into a 12-year service agreement on the acquired assets with Airtel Africa. The agreement is expected to deliver revenue of $23 million and adjusted earnings before interest, tax, depreciation, and amortization of $8 million in its first full year of ownership of the tower company.
Further growth is anticipated through 60 committed build-to-suits over the next three years and a colocation lease-up, the London-based telecommunications firm said.
In another separate statement, JP Morgan Securities PLC noted that Singapore Telecom International Pte Ltd has sold 60 million ordinary shares in Airtel Africa at a price of 140 pence per share, raising gross proceeds of £84 million.
JP Morgen Securities added that Airtel Africa will not receive any proceeds from the placing.
Airtel Africa shares were trading 9.1% lower in London on Friday morning at 141.30 pence each.
Shares in Helios Towers were down 0.9% at 116.40 pence each.
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