Helios Towers plc, the independent telecommunications infrastructure company, has signed an agreement with Free Senegal – Senegal’s second-largest mobile operator supported by a consortium of investors including NJJ, the founder of the Iliad private holding company Xavier Niel Group, Teyliom Group and Axian Group – to acquire its passive infrastructure assets, for an initial cash consideration of 160 million euros (approximately 189 million dollars). Clearly, 178 million euros (about 210 million dollars) and about 18 million euros (about 21 million dollars) in taxes and capitalized land leases.
Deferred consideration and growth capex of 40 million euros ($ 47 million) and approximately 30 million euros ($ 35 million) respectively are expected to be invested over the next 5 years in relation to the deployment 400 new custom construction sites engaged.
In addition, Helios Towers and Free Senegal have entered into a 15-year service contract for the provision of accommodation and energy services at acquired sites and sites to be built in the future. Thanks to this transaction, Helios Towers will become the largest independent supplier of tower infrastructure in Senegal with 1,220 sites. These assets are expected to initially generate current rate revenue of € 32 million (approximately $ 38 million) and turnover adjusted EBITDA of € 16 million (approximately $ 19 million). of dollars). The net profit before tax generated by the assets to be acquired as part of this transaction as at December 31, 2019 was 11 million euros (12 million dollars).
The transaction is expected to close by the first quarter of 2021 subject to customary completion conditions and regulatory approval. The operation will be fully financed by the existing liquidity and borrowing facilities of Helios Towers.
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