Business
Acquisition of over 1,200 sites from Free Senegal
Acquisition of over 1,200 sites from Free Senegal.
About this update from Helios Towers Plc
[{"type":"text","content":"\n \n \n RNS Number : 8924V\n Helios Towers PLC\n 12 August 2020\n \n \n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \n \n \n \n \n Helios Towers plc\n \n \n \n \n \n Helios Towers agrees to acquire over 1,200 sites from Free Senegal for €160 million\n \n \n \n \n \n Transaction supports entrance into a new market\n \n \n \n \n \n Build-to-suit commitment for at least 400 additional new sites\n \n \n \n \n \n \n London, 12 August 2020:\n \n \n Helios Towers plc (\"Helios Towers\", the \"Group\"), the independent telecommunications infrastructure company, has signed an agreement with Free Senegal - the second largest mobile operator in Senegal backed by a consortium of investors including NJJ, the founder of the Iliad S.A. group Xavier Niel's private holding company, Teyliom Group and Sofima - to acquire its passive infrastructure assets, for an upfront cash consideration of €160 million (c.$189 million) (the \"Transaction\"). This represents an enterprise value of €178m (c.$210m) including an estimated €18m (c.$21m) of taxes and capitalised ground leases. \n \n \n \n \n \n Deferred consideration and growth capex of €40m ($47m) and c.€30m ($35m) respectively are expected to be invested over the next 5 years in relation to the rollout of 400 committed new build-to-suit sites.\n \n \n \n \n \n Helios Towers and Free Senegal have entered into a 15-year service agreement for the provision of hosting and energy services on the acquired sites and the sites to be built in the future. \n \n \n \n \n \n Through this Transaction Helios Towers will become the largest independent tower infrastructure provider in Senegal with 1,220 sites. These assets are expected to initially deliver run-rate revenues of €32 million (c.$38 million) and run-rate adjusted EBITDA of €16 million (c.$19 million). The net profit before tax generated by the assets to be acquired in this Transaction as at 31 December 2019 was €11 million ($12 million). \n \n \n \n \n Similar to Helios Towers other markets, Senegal represents a compelling market for telecoms with its combination of a young, growing and increasingly urbanised population plus high GDP growth, as well as benefitting from a hard currency Euro-pegged environment. These dynamics will continue to drive increasing demand ...