Helios Towers, Airtel Africa agree on acquisition and roll out of over 2500 sites

Helios Towers, a leading independent tower company in Africa, has recently announced a significant expansion of its operations through agreements with Airtel Africa for the acquisition of passive infrastructure operating companies in Madagascar and Malawi. The companies have also entered into an exclusive Memorandum of Understanding for the potential acquisition of passive infrastructure assets in Chad and Gabon, pending regulatory approval. In an exclusive interview with CNBC Africa, Kash Pandya, Group CEO of Helios Towers, shed light on the intricacies of the acquisitions, highlighting the strategic importance of these transactions in bolstering the company's presence in key markets. The acquisitions mark a major milestone for Helios Towers, as they deepen the longstanding relationship between the two companies. With a portfolio of close to 12,000 towers across 10 markets, Helios Towers is poised for significant growth and expansion in the region. The transactions in Madagascar and Malawi are set to be concluded by the fourth quarter of this year, with plans to close the deals in Chad and Gabon by the first quarter of 2022, upon regulatory approval and the attainment of operating licenses. One of the key themes that emerged from the interview is the growing trend of tower outsourcing in Africa, with mobile network operators (MNOs) looking to offload their towers to focus on active equipment and network rollout. Pandya highlighted that only 27% of the 225,000 towers in Africa have been outsourced thus far, presenting a significant opportunity for companies like Helios Towers to drive further outsourcing in the region. With a strong focus on building and upgrading infrastructure for long-term returns, Helios Towers aims to capitalize on this trend and expand its footprint in the market. Furthermore, Pandya emphasized the company's commitment to local staff development and empowerment, with 100% of the staff in their operating units in existing markets being African and 98% from the markets in which they operate. This localized approach not only enhances operational efficiency but also strengthens the company's relationships within the communities where they operate. Financially, Helios Towers financed the transactions in Madagascar and Malawi through a combination of cash and debt facilities, with a further capacity of over half a billion dollars for future transactions in Africa and the Middle East. The company's expansion plans have already exceeded initial targets, with a current portfolio of 12,000 towers across multiple markets. Looking ahead, Helios Towers has a robust M&A pipeline, with over 99,000 towers under consideration for potential acquisition, signaling a strong growth trajectory for the company. In conclusion, Helios Towers' recent acquisitions and expansion plans signify a game-changer in infrastructure investment in Africa. With a strategic focus on driving tower outsourcing, fostering local talent, and pursuing further growth opportunities, the company is well-positioned to capitalize on the evolving telecom landscape in the region. As Helios Towers continues to forge partnerships and expand its reach, it is set to play a pivotal role in shaping the future of telecommunications infrastructure in Africa.