Bharti Airtel to sell 3,100 towers in Africa

Bharti Airtel said on Wednesday it would sell about 3,100 telecom towers spread across four countries in Africa to Helios Towers Africa. Bharti Airtel did not disclose the deal value, tower companies, who operate in Africa, said the valuation of towers ranges between Rs 40 lakh and Rs 50 lakh depending on the location. Out of 17 countries in Africa, where Bharti Airtel has operations, valuation is higher at Rs 1 crore in Nigeria.

“The agreement while allowing Airtel to focus on its core business and customers, would also enable it to deleverage through debt reduction, and will significantly reduce its ongoing capital expenditure on passive infrastructure,” a statement said.

Manoj Kohli, chairman, Bharti Airtel International Netherlands BV (BAIN), said: “Airtel pioneered the concept of a separate tower entity to promote infrastructure sharing in India and this agreement is a continuation of that philosophy. It is an important step towards the consolidation of tower assets across Africa that will drive industry-wide cost efficiencies through infrastructure sharing. The agreement will further help in accelerating the growth of telecom services in the continent and at the same time benefit the environment by avoiding duplication of infrastructure."

Chuck Green, chief executive officer of HTA, added: “HTA is proud to be chosen by Airtel as its partner for the ownership and management of its existing infrastructure. This is a ground-breaking move for HTA and Airtel’s decision is a significant endorsement of HTA’s reputation, management team and operating track record.”

Bharti Airtel's African business has been a drag on the company, which has to yet to turn a profit there four years after spending $9 billion to acquire money-losing mobile phone assets. The Indian company will have full access to the towers under a long-term lease contract, the company said.

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