REG - Helios Towers PLC - Closing of tower acquisition in Oman

Helios TowersAnnouncement

08/12/2022 15:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221208:nRSH1173Ja&default-theme=true

RNS Number : 1173J  Helios Towers PLC  08 December 2022

Helios Towers plc

 

Closing of tower acquisition in Oman

 

London, 8 December 2022: Helios Towers plc ("Helios Towers"), the independent
telecommunications infrastructure company, today announces it has closed the
acquisition of Omantel's passive infrastructure assets in Oman, adding 2,519
sites to its portfolio for a gross consideration of US$495 million.

 

Tom Greenwood, Chief Executive Officer, commented:

"We are delighted to close the acquisition of Omantel's tower assets. The
transaction represents our first in the Middle East, and we enter one of the
fastest growing markets for mobile infrastructure in the region with our
valued local partner, Rakiza.

 

Since announcing the transaction last year, we have built a talented local
team and instilled our business excellence principles, and we now look forward
to working with Omantel, a great long-term partner, and the other MNOs to
drive the growth of mobile communications across Oman."

 

Commenting on the completion, Mr. Talal Said Al Mamari, Chief Executive
Officer of Omantel, said:

"We are pleased to complete the sale of our passive tower infrastructure in
Oman. This aligns to our strategy to develop world class asset-light,
strategic and advanced communication networks in Oman. This transaction helps
Omantel to achieve effective deleveraging and focus on optimised capital
structure for the company. We believe Helios Towers will bring in extensive
savings and efficient passive infrastructure solutions and services for
Omantel, which in turn will help efficient telecom sector operations and job
growth in Oman."

 

Muneer Al-Muneeri, Chairman of Rakiza Fund, added:

"Rakiza is pleased to partner with Helios Towers in closing this landmark
acquisition - the first fully independent telecom towers operation in the
region. We look forward to working closely with all stakeholders to achieve
common targets. This is an exciting opportunity to contribute towards meeting
the growing demand for state-of the-art telecoms infrastructure in Oman by
combining Helios' strong technical and operational expertise with Rakiza's
financial and regional experience."

 

Closing details

The Group has acquired 2,519 out of the 2,890 sites previously communicated,
and accordingly, the gross consideration, revenues and Adjusted EBITDA have
been adjusted downward to reflect the amended perimeter(1).

 

Revenues and Adjusted EBITDA in the first year of operations on the acquired
sites are anticipated to be US$50 million and US$34 million, respectively,
with further growth expected through 300 build-to-suit ("BTS") sites committed
over the next seven years, and colocation lease-up.

 

The gross consideration of US$494.6 million has been funded through US$206.2
million Group funds, of which US$24.0 million was pre-paid in 2021, US$88.4
million from the 30% minority shareholder, Rakiza, and US$200.0 million local
bank debt. Including capitalised ground leases, this represents an enterprise
value of US$515 million.

 

The Group continues to target the acquisition of 227 further sites from
Omantel, which are In-Building Solutions that remain subject to regulatory
approval, for a gross consideration of US$53 million. Helios Towers and
Omantel have extended the long-stop date for the potential acquisition of
these sites to May 2024.

 

(1) Gross consideration, revenues and Adjusted EBITDA have been adjusted
downward by US$80 million, US$9 million and US$6 million, respectively, to
reflect the lower site count.

 

Helios Towers Investor Relations:

Chris Baker-Sams, Head of Strategic Finance and Investor Relations

+44 (0)752 310 1475

investorrelations@heliostowers.com (mailto:investorrelations@heliostowers.com)

 

Media Relations:

Edward Bridges / Stephanie Ellis

FTI Consulting LLP

+44 (0)20 3727 1000

 

 

About Helios Towers

 

·    Helios Towers is a leading independent telecommunications
infrastructure company, having established one of the most extensive tower
portfolios across Africa and the Middle East. It builds, owns and operates
telecom passive infrastructure, providing services to mobile network
operators.

 

·    Helios Towers owns and operates over 13,300 telecommunication tower
sites in Tanzania, Democratic Republic of Congo, Congo Brazzaville, Ghana,
South Africa, Senegal, Madagascar, Malawi and Oman.

 

·    Helios Towers pioneered the model in Africa of buying towers that
were held by single operators and providing services utilising the tower
infrastructure to the seller and other operators. This allows wireless
operators to outsource non-core tower-related activities, enabling them to
focus their capital and managerial resources on providing higher quality
services more cost-effectively.

 

For more information about Helios Towers, please visit:
https://www.heliostowers.com/investors/
(https://www.heliostowers.com/investors/)

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQFSDFLAEESEIE