Bharti Airtel - Inks Fourth Tower Sale Deal in Africa ::Edelweiss, link

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Bharti Airtel (Bharti) has announced that it will divest over 1,100 telecom towers in Zambia and Rwanda to IHS Holding (IHS). The company will be the anchor tenant on the portfolio under lease with a 10-year initial term. Although no financial details have been disclosed, assuming USD150,000/tower, the deal value works out to ~USD165mn. This is the company’s fourth tower divestment deal in Africa; earlier, it had divested 4,800 towers to American Tower Corporation, 3,500 to Eaton Towers and 3,100 to Helios Towers Africa. Thus, including the current sale, Bharti has divested ~12,500 of total ~18,000 towers in Africa, which can translate into total deal value of ~USD2.2bn. The tower sales will enable the company to not only pare debt (currently USD10.1bn), but also lower ongoing capex requirement on passive infrastructure; hence, we perceive it as a step in the right direction.

Contours of the agreement

• Bharti will divest ~1,100 towers to IHS in Zambia and Rwanda.
• It will be the anchor tenant on the portfolio under lease with a 10-year initial term.

LINK
https://www.edelweiss.in/research/EdelFlash-Bharti-Airtel--Inks-Fourth-Tower-Sale-Deal-in-Africa/27833.html