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Telecoms

Helios Towers completes acquisition of Airtel Africa's mobile tower business in Malawi

Gross consideration for the deal is US$55mln, of which 20% is backed by Old Mutual Infrastructure Investment Trust Fund, representing a local Malawian shareholding of 20%

Helios Towers PLC (LSE:HTWS) has closed the acquisition of Airtel Africa PLC (LSE:AAF)'s telecommunication towers business in Malawi, adding 723 sites to its portfolio.

Gross consideration for the deal is US$55mln, of which 20% is backed by Old Mutual Infrastructure Investment Trust Fund, representing a local Malawian shareholding of 20%, Helios said in a statement.

A 12-year service agreement has also been signed between London-based Helios and Airtel Africa on the acquired assets, which are expected to generate revenue of US$23mln and adjusted EBITDA of US$8mln in their first full year of ownership.

A further 60 build-to-suits will be committed over the next three years as well as colocation lease-up, Helios added.