25th Nov 2022 08:52
(Alliance News) - Helios Towers PLC on Friday said that all closing conditions have been satisfied for its agreement with the largest mobile network operator in Oman, Omantel Telecommunications Co to buy its cell towers.
Helios Towers is a London-based, Africa-focused telecommunications infrastructure company. It owns and operates telecommunication tower sites in Tanzania, the Democratic Republic of Congo, Congo Brazzaville, Ghana, South Africa, Senegal, Madagascar and Malawi.
According to the deal, Helios will acquire the entirety of Omantel's passive tower infrastructure portfolio. The purchase is unconditional, and expected to complete next month.
The agreement was first announced in May 2021, with Helios originally intended to be the sole purchaser. According to the terms, Helios would acquire all of Omantel's 2,890 target assets for a cash consideration of USD575 million, representing an enterprise value of USD615 million.
However, in June this year, the mobile phone tower developer said it would be reducing its purchase stake after finding a partner for the acquisition.
Under the new, recently confirmed agreement, Helios has agreed to purchase 70%, while Oman Infrastructure Fund, through its wholly-owned subsidiary Rakiza Telecommunication Infrastructure, will buy the remaining 30%.
The cash consideration due to Oman Telecommunications remains unchanged, but will now be split between the two parties according to their stake in the holding company.
In June, Helios estimated the first year revenue potential of its new assets at USD59 million, and adjusted earnings before interest, tax, depreciation and amortisation of USD40 million.
The company will fund the acquisition through its existing cash and available bank facilities.
Helios shares were trading 1.2% higher at 122.90 pence each in London on Friday morning.
By Holly Beveridge; [email protected]
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