American Tower Corporation (ATC) has reached an agreement to acquire 723 telecommunication towers from Telkom Kenya for an undisclosed amount, Business Daily reported. The deal is expected to be completed in the first half of 2018 and will give ATC a presence in the country nearly a decade after its maiden foray into East Africa through similar acquisitions in Uganda and Tanzania.
ATC's recently formed Kenyan subsidiary, AT Kenya C.V., entered into a definitive agreement with Telkom Kenya on 03 April to acquire up to 723 communications sites. The transaction is expected to close during the second half of 2018, subject to customary closing conditions, including the satisfaction of regulatory approvals, it added. Telkom Kenya had not provided the Business Daily with additional details of the transaction by the time of going to press.
The deal is expected to enable third-placed Telkom Kenya to use the proceeds to strengthen its balance sheet. The operator is said to be negotiating a joint operation plan with Airtel Kenya. Telkom Kenya said earlier that its five-year strategy was to invest KES 15.2 billion in its 3G and 4G networks as well as mobile financial services and customer service.
Private equity firm Helios bought into Telkom Kenya in 2016, saying it intended to support it through heavy investments and an overhaul of management. Telkom Kenya said it has already invested about KES 5.6 billion in expanding and modernising its network, including launching 4G services. Telkom Kenya is set to receive a KES 4.1 billion loan from the European Investment Bank (EIB) to boost infrastructure and mobile money network, too.
