The deal represents Vodacom Group’s first-ever towers transaction and is valued at approximately $75 million (R736 million), according to the Financial Times.
The deal will see the transfer of 1,149 existing telecoms towers from Vodacom to HTT and a commitment to an ambitious, short-term rollout to increase in points of service owned by HTT – which more than doubles its existing presence in Tanzania.
The deal will expand HTA’s tower coverage in Africa to 4,700. The group has operations in Ghana, Tanzania, the Democratic Republic of Congo and a sister company in Nigeria.
Vodacom, in turn, will lease back the infrastructure subject to a long term contract, while HTA will provide close to 2,700 points of service to Vodacom and affiliates across Africa.
The structure of the cash and shares transaction, also involves Vodacom acquiring a 24.5% share in HTT.
Vodacom Tanzania boasts 9.66 million customers, while Vodacom Group has operations in South Africa, Lesotho, the Democratic Republic of Congo, and Mozambique, with an overall subscriber base of 51.5 million.
Chuck Green, CEO of HTA, said: “HTA is proud to be chosen by Vodacom as its partner for the ownership and management of its existing infrastructure and as the solution provider for its future roll out.”
“This is a ground-breaking move for Vodacom and their equity investment is a significant endorsement of HTA’s reputation, management team and operating track record.”