InvestorQ : Why is Bharti Airtel aggressive selling its towers business in Africa?
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Why is Bharti Airtel aggressive selling its towers business in Africa?

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Rashi Mehra answered.
8 months ago
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Airtel Africa, a subsidiary of Bharti Airtel, plans to sell a total of 1424 towers in the African regions of Madagascar and Malawi. These towers will be sold to Helios Towers for a consideration of $119 million. This was disclosed by Bharti Airtel in a regulatory filing to the stock exchanges as is statutorily required.

In addition to this, tower assets in other African nations like Chad and Gabon are also in the process of being hived off. Airtel Africa has an overall tower portfolio of 1229 towers in Madagascar and Malawi, which they plan to monetize. Airtel Africa also has a portfolio of 1000 towers in Chad and Gabon put together. Bharti has been looking to monetize some of its Africa assets.

The transaction is slated to close in the last quarter of calendar year 2021. The proceeds of this monetization of tower assets will be used to reduce the outstanding external debt of Airtel Africa. Part of the funds raised will also be invested in network and sales infrastructure to enhance its service offerings, but reduced debt will surely make the African operations of Bharti a lot more flexible.

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