Bharti Airtel enters agreement with American Tower Corporation to sell towers in Tanzania

NEW DELHI: India’s top telecom service provider Bharti Airtel said that it has entered into a definitive agreement with that it has entered into a definitive agreement with American Tower Corporation (ATC) through its subsidiary company, Airtel Tanzania Limited, for the sale of approximately 1,350 of its communications towers in Tanzania.

Under the agreement, American Tower may acquire up to approximately 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.

“Airtel remains committed to Tanzania and will continue to invest in its operations and serve customers with world-class services," said Christian de Faria, MD & CEO (Africa), Bharti Airtel.

“With a young, growing population, tremendous growth potential and a complementary location relative to our existing African operations, we viewTanzania as a highly attractive adjacent market opportunity," said Hal Hess, EVP and President, EMEA, of American Tower.

The tower sale agreements allow Airtel to focus on its core business and customers, besides helping deleverage through debt reduction, and significantly reducing the on-going capital expenditure on passive infrastructure.

The transaction is expected to close during the first half of 2016, subject to customary closing conditions and regulatory approval.