Paradigm Infrastructure Limited (“Paradigm”) is pleased to announce the closing of the acquisition of Airtel Africa’s tower assets in Tanzania in a deal valued at $176.1 million.
First Closing of Tower Acquisition Transaction in Tanzania
The transaction is being made by a joint venture company owned by Paradigm and SBA Communications.
Paradigm will hold a minority stake of the joint venture company acquiring the assets and maintain responsibility for the JV’s day-to-day operations. Paradigm will contribute its specific industry experience in establishing and operating new shared wireless infrastructure in African markets, complementing the extensive US and international experience of SBA.
The sale of the tower assets is a strategic divestment of Airtel’s tower portfolio, as the company moves to reduce its assets base and focus on core subscriber operations such as voice and data services. According to the terms, Airtel will develop, maintain and operate its equipment on the towers under a lease arrangement with the new owners. With first closing, approximately $159m of the proceeds for the transaction has now been paid, with the balance payable in instalments upon the completion of the transfer of remaining towers to the Purchaser.
Tanzania represents an exciting market with high demand for shared wireless infrastructure. The Paradigm team is very much looking forward to building a strong customer focussed business providing high quality and secure infrastructure to wireless network operators.
Paradigm is a UK limited company focused on developing, owning, and operating shared passive wireless infrastructure in selected growth markets. The Paradigm team has significant experience in the acquisition and operation of tower sites across EMEA, LATAM and the United States.
SBA is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells, with a portfolio of more than 33,000 communications sites in fourteen markets throughout the Americas and South Africa.
Airtel Africa is a leading provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa. Airtel Africa offers an integrated suite of telecommunications solutions to its subscribers, including mobile voice and data services as well as mobile money services both nationally and internationally.