Millicom sells towers in DRC to Helios

Millicom International has sold 729 towers belonging to its Tigo subsidiary in the Democratic Republic of the Congo to Helios Towers. As a result of the transaction, Tigo DRC will receive at least US$45 million of cash up front and will retain a significant minority interest in Helios Towers’ local holding company.

Additionally, Tigo DRC and Helios have entered into a long-term leasing agreement whereby Helios will provide Tigo DRC with access to wireless communications towers and a build-to-suit agreement to support the company’s wireless networks. Helios will seek similar agreements with other operators in DRC. The transaction is expected to create savings in both capital and operating expenditure for Tigo DRC.

“This agreement with Helios in DRC is Millicom’s third such deal with the company in Africa and it brings us to a point where nearly two-thirds of our towers in Africa are committed to be outsourced,” said Mikael Grahne, president and CEO of Millicom. “We view the DRC as a very attractive market for asset sharing considering its size, lower average purchasing power and logistical complexities. We are confident that this and similar previously announced ventures will continue to produce satisfactory results and improved service levels as we have experienced in Ghana since the creation of the first tower joint venture in Africa with Helios in January 2010.”