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Helios to buy 750 Millicom Ghana towers
26 January 2010
Millicom’s Tigo mobile business in Ghana is to sell 750 of its towers to a specialist infrastructure company, Helios Towers
Read more:
[Millicom]
[Ghana]
[Tigo]
[Helios]
[infrastructure]
[Soros]
[towers]
Comment: There’s an increasingly popular trend among operators — especially in emerging markets — to sell off their passive infrastructure to independent tower operators. If those towers can then be used by other operators, this increases the competitive market and improves efficiency for all.
Millicom Ghana — which operates under the Tigo brand —will sell about 750 of its towers to Helios Towers Ghana. As part of the agreement, Tigo Ghana will maintain a minority interest in HTG, a direct unit of Helios Towers Africa.
The two companies have also signed a long-term leasing agreement, under which HTG will provide Tigo Ghana with wireless communications towers, including a build-to-suit agreement to support the company’s wireless networks.
HTG will now look for similar deals with other operators in Ghana. The deal will enable Tigo Ghana to focus on other areas including, sales, marketing, distribution, service innovation and customer care.
The first closing of the transaction, subject to customary closing conditions, is expected to take place in about three months.
Helios Towers Africa was founded by Helios Investment Partners, SSP Offshore, an affiliate of Soros Fund Management, RIT Capital Partners and Lord Rothschild’s family interests, and Albright Capital Management. GTB
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