Helios buys towers from Tigo DRC
Infrastructure sale and outsourcing deal will help Tigo DRC reduce opex and capex.
Tigo DRC, a telecom operator in Democratic Republic of Congo and a subsidiary of Millicom International Cellular, has agreed to sell 729 towers to Helios Towers DRC, a subsidiary of telecoms infrastructure specialist, Helios Towers Africa.
Tigo DRC will receive at least $45 million of cash upfront and will retain a "significant" minority interest in Helios Towers DRC, according to Millicom.
As part of the agreement, Helios Towers DRC will provide Tigo DRC with access to wireless communications towers and a "build-to-suit" agreement to support the company's wireless networks.
Helios Towers DRC will seek similar agreements with other operators in DRC, allowing it to make better use of spare capacity on the network, creating capex and opex savings for Tigo DRC.
Mikael Grahne, president and CEO of Millicom, said: "This agreement in DRC is Millicom's third such deal with Helios in Africa and it brings us to a point where nearly two-thirds of our towers in Africa are committed to be outsourced. We view the DRC as a very attractive market for asset sharing considering its size, lower average purchasing power and logistical complexities."