Helios Towers acquired Airtel Africa’s passive infrastructure company in Malawi for $55 million on Friday.
The passive infrastructure company is a telecommunications tower firm that will continue to develop and operate its own equipment on the towers via separate lease agreements with Helios Towers.
The deal will add 723 sites to Helios Towers‘ portfolio and the two companies telecommunications companies have agreed to a 12-year service agreement on the assets exchanged in the transaction.
Helios Towers is set to pay a consideration of $55 million with a 20% contribution from the Old Mutual Infrastructure Investment Trust Fund.
The investment will amount to a local Malawian shareholding worth 20%, in compliance with local telecommunications infrastructure licence requirements.
The deal is expected to bring in revenues of $23 million and an adjusted EBITDA of $8 million over the initial year of ownership.
Helios Towers reportedly anticipates further growth through 60 committed ‘build to suits’ across the coming three years and colocation lease-up.
Helios Towers saw its share price decline 1.1% to 116p in early morning trading on Friday.