Yet another passive infrastructure sale has been announced – this time in Oman.
Leading independent telecommunications infrastructure company Helios Towers plc and Oman Telecommunications Company (Omantel) have signed an agreement through which, if it is approved, Helios Towers will acquire Omantel’s passive tower infrastructure portfolio of 2,890 sites, for a cash consideration of $575 million.
Through the transaction, Helios Towers says it will establish its presence in the Middle East, becoming a leading independent tower infrastructure provider in Oman.
Helios says these assets are expected to deliver revenues of $59 million and adjusted EBITDA of $40 million in the first full year of operations, with further growth anticipated through colocation lease-up and 300 build-to-suit (BTS) sites committed over the next seven years, for which $35 million growth capex is expected to be invested.
Helios also plans to enhance the current tower portfolio and develop a local Omani team. Upon closing of the deal, Helios Towers and Omantel will enter into a long-term service contract for an initial period of 15 years.
The company says that this transaction is strongly aligned to its new market and strategic growth criteria. It expects to achieve its group target of 12,000-plus towers well ahead of plan.
This agreement comes very soon after the March announcement from pan-African operator Airtel Africa that it planned to sell its telecommunications tower companies in Madagascar and Malawi to Helios Towers. Helios also made tower infrastructure purchases in Senegal and South Africa last year.