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Airtel Africa announces 1st closing of tower sale transaction in Malawi

Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, today March 25th 2022, announced the first closing of the transaction to sell its telecommunications tower company in Malawi to Helios Towers Plc, a leading independent telecommunications infrastructure company in Africa.

According to the notice signed by Simon O’Hara, Group Company Secretary, presented to the Nigerian Exchange this morning, the gross consideration for the transaction will be $54.7 million.

Under the terms of the transaction, Airtel Africa’s subsidiary in Malawi will continue to develop, maintain and operate its equipment on the towers under separate lease arrangements, largely made in local currencies, with the purchaser.

It would be recalled that the company recently announced that it had entered into memorandum of understanding agreements for the potential sale of its tower assets in Chad and Gabon, to Helios Towers Plc (Helios Towers).

TBI Africa reported that in Gabon, Airtel Africa and Helios Tower extended their memorandum of understanding arrangement, with completion still subject to Helios Towers obtaining a passive infrastructure licence.

While in Chad, on 24 February 2022, the memorandum of understanding arrangement relating to tower assets in Chad expired, and Airtel Africa and Helios Towers mutually agreed that this would not be renewed.

On 4 February 2022, Airtel Africa, confirmed it has completed the early repayment of its c.$505 million 5.125 per cent Guaranteed Senior Notes, originally due in March 2023, using cash balances available at Group level.

Settlement includes all outstanding accrued interest up to the Redemption date of 7 March 2022. One-off costs of c.$17.6 million for the applicable premium will be recorded within finance costs, while the Group will save an aggregate of c.$26.5 million future interest payments from early redemption.

Since the time of the IPO in June 2019, Airtel Africa has successfully pursued a strategy of strengthening its balance sheet through both deleveraging and reducing US dollar debt exposure.

Over this period the Group has reduced its USD HoldCo debt by c.$1.7 billion and improved its leverage ratio to 1.4x net debt to underlying EBITDA at December 2021. Following this early repayment of Senior Notes, the Group has $1 billion of bonds remaining at HoldCo level, due in May 2024.

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.

The Group aims to continue providing a simple and intuitive customer experience through streamlined customer journeys. Airtel Africa will continue to provide further market updates as and when appropriate.

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