Helios Towers to acquire 1,200 Senegalese sites

Telecommunications infrastructure company Helios Towers has agreed to acquire over 1,200 sites from African mobile operator Free Senegal.

Helios said on Wednesday that to acquire Free Senegal's passive infrastructure assets for an upfront cash consideration of €160m - representing an enterprise value of €178m, which also includes an estimated €18m-worth of taxes and capitalised ground leases.

The FTSE 250-listed group expects to pay a deferred consideration of €40m and invest roughly €30m in growth capex into the assets over the next five years.

Following the transaction, Helios will become the largest independent tower infrastructure provider in Senegal, initially delivering run-rate revenues of €32m and run-rate adjusted underlying earnings of €16m.

Helios expects the transaction to close by the end of 2021's first quarter.

Chief executive Kash Pandya said: "This agreement is aligned perfectly with our 2025 strategic ambitions, broadening our footprint within the African towers infrastructure market.

"We are acquiring a market-leading independent position in Senegal with long-term contracted revenues and a clear path to value creation through additional organic tower development, uplifts in the tenancy ratio and improved operational effectiveness, all built on the foundation of 15-year contracts."

As of 0830 BST, Helios shares were down 2.12% at 163.46p.