By R. Jai Krishna
NEW DELHI-- Bharti Airtel Ltd, India's biggest
telecommunications company, said that its Netherlands-based unit
has agreed to sell its telecommunications towers in Nigeria to
American Tower Corp.
Bharti Airtel International Netherlands B.V., the holding
company of Bharti Airtel's African operations, will sell 4,800
towers and then lease them back from American Tower for 10 years,
the two companies said in a joint statement.
Bharti didn't disclose the value of the transaction. However,
American Tower in a filing to the Securities and Exchange
Commission in the U.S. on Monday said the total consideration for
the deal is expected to be $1.05 billion.
"The agreement will allow Airtel to focus on its core business
and customers, enable it to deleverage through debt reduction and
will significantly reduce its on--going capital expenditures on
passive infrastructure in Nigeria," Bharti said in a statement
released to a stock exchange in Mumbai late Monday.
Nigeria is the biggest market within Bharti's African
operations.
Boston., MA-based American Tower Corp. is an independent
telecommunications and broadcast real-estate company which owns,
operates and develops about 70,000 towers for cellphone companies
and television stations. This deal will mark American Tower's first
foray into Nigeria. It already has operations in Ghana, South
Africa and Uganda.
Bharti and American Tower expect to close the transaction during
the first half of 2015, subject to regulatory approvals, the
company's joint statement said.
Bharti's profits have been under pressure since 2010 because of
high interest costs on the loans it took to buy the African
operations of Mobile Telecommunications Co.
The New Delhi-based company--which is about 32%-owned by
SingTel--has been selling stakes in itself and its unit to pay off
some of those loans.
In July, it had agreed to sell 3,000 telecom towers to Helios
Towers Africa for an undisclosed amount. Later in September, it
signed sale-and-leaseback agreements for about 3,500 towers to
Eaton Towers Ltd.
Write to R. Jai Krishna at krishna.jai@wsj.com
Access Investor Kit for Bharti Airtel Ltd.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=INE397D01024
Access Investor Kit for American Tower Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US03027X1000
Subscribe to WSJ: http://online.wsj.com?mod=djnwires