LONDON, UK: Helios Towers plc has acquired Omantel’s passive infrastructure assets in Oman, including 2,519 websites to its portfolio for a gross consideration of US$495 million.
Tom Greenwood, Chief Executive Officer, commented: “We are delighted to shut the acquisition of Omantel’s tower assets. The transaction represents our first within the Middle East, and we enter one of many quickest rising markets for mobile infrastructure within the area with our valued native partner, Rakiza.
Since announcing the transaction final year, we have constructed a talented native team and instilled our enterprise excellence principles, and we now look ahead to working with Omantel, a nice long-term partner, and the opposite MNOs to drive the expansion of mobile communications throughout Oman.”
Commenting on the completion, Mr. Talal Said Al Mamari, Chief Executive Officer of Omantel, said: “We are happy to full the sale of our passive tower infrastructure in Oman. This aligns to our technique to develop world class asset-light, strategic and superior communication networks in Oman.
This transaction helps Omantel to obtain efficient deleveraging and focus on optimised capital construction for the company. We believe Helios Towers will bring in extensive financial savings and environment friendly passive infrastructure options and services for Omantel, which in flip will assist environment friendly telecom sector operations and job growth in Oman.”
Muneer Al-Muneeri, Chairman of Rakiza Fund, added: “Rakiza is happy to partner with Helios Towers in closing this landmark acquisition – the primary fully independent telecom towers operation within the region.
We look ahead to working closely with all stakeholders to obtain common targets. This is an thrilling alternative to contribute towards assembly the rising demand for state-of the-art telecoms infrastructure in Oman by combining Helios’ strong technical and operational experience with Rakiza’s monetary and regional experience.”
Helios Towers has acquired 2,519 out of the 2,890 websites beforehand communicated, and accordingly, the gross consideration, revenues and Adjusted EBITDA have been adjusted downward to mirror the amended perimeter.
Revenues and Adjusted EBITDA within the primary year of operations on the acquired websites are anticipated to be US$50 million and US$34 million, respectively, with additional growth anticipated through 300 build-to-suit (“BTS”) websites dedicated over the subsequent 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 native financial institution debt. Including capitalised floor leases, this represents an enterprise worth of US$515 million.
The Group continues to focus on the acquisition of 227 additional websites from Omantel, that are In-Building Solutions that stay topic to regulatory approval, for a gross consideration of US$53 million. Helios Towers and Omantel have prolonged the long-stop date for the potential acquisition of those websites to May 2024.