Airtel will divest about 3,100 towers to HTA in four countries across Africa. This will expand HTA's tower coverage in Africa to more 7,800 self-owned towers. The company said the agreement will help Airtel deleverage through debt reduction and reduced ongoing capital expenditure. Airtel will also have the right to use the towers from HTA under a long-term lease contract.
“The agreement is another milestone in Airtel’s growth journey in Africa. 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”, said Manoj Kohli, managing director, Bharti Airtel.
The deal also allows Airtel to deleverage through debt reduction and will cut down its ongoing capital expenditure on passive infrastructure.