Bharti Airtel announced a definitive agreement for American Tower Corporation to buy about 1,350 of its communications towers in Tanzania. Under the agreement, American Tower may acquire up to 100 additional sites currently in development for an additional consideration. Airtel will be the anchor tenant on the portfolio under a lease with a ten-year initial term.
The statement said the sale agreement will allow Airtel to focus on its core business and customers, besides helping reduce debt and capital expenditure. The transaction is expected to close during the first half of 2016, subject to customary closing conditions and regulatory approval. No financial details of the acquisition were disclosed.
Airtel last year held talks with Helios to sell its towers in Tanzania but was unable to reach a final agreement. Helios already works with Vodacom and Tigo in Tanzania. This is ATC's first acquisition in Tanzania. In 2015 it acquired infrastructure from Airtel in Nigeria.
