Bharti to sell 3,100 towers to HTA

Under pressure due to its heavy debts, India’s largest telecom company Bharti Airtel is selling off its 3,100 towers to Helios Towers Africa (HTA). As per the deal, Airtel will have full access to the towers from HTA under a long-term lease contract and tower operations-related personnel will be transferred from Airtel to HTA. “The agreement while allowing Airtel to focus on its core business and customers, would also enable it to deleverage through debt-reduction, and will significantly reduce its ongoing capital expenditure on passive infrastructure,” a statement said. The company is planning to sell off its tower business, which comprises 15,000 towers, in Africa in a deal worth $3 bn, media reports had said earlier. It is planning to sell over a fifth of its telecom tower portfolio in Africa to Helios Towers Africa (HTA). Manoj Kohli, chairman, Bharti Airtel International Netherlands BV (BAIN), said: “Airtel pioneered the concept of a separate tower entity to promote infrastructure sharing in India and this agreement is a continuation of that philosophy. It is an important step towards the consolidation of tower assets across Africa that will drive industry-wide cost efficiencies through infrastructure sharing.” Chuck Green, chief executive officer of HTA, added: “HTA is proud to be chosen by Airtel as its partner for the ownership and management of its existing infrastructure. This is a ground-breaking move for HTA and Airtel’s decision is a significant endorsement of HTA’s reputation, management team and operating track record.” Media reports had said earlier that up to $2 bn of the sale proceeds of overall tower business will be used to retire debts of Bharti, helping it to improve the company’s margins and result in higher profit before tax. The rest will be used for capital expenditure.