Helios Towers, the independent telecommunication infrastructure company, has announced the extension of the long-stop date relating to its acquisition of Oman Telecommunications Company’s (Omantel) passive infrastructure portfolio. The original date of July 12 has now been extended to September 30.
On May 11, 2021, Helios agreed to buy Omantel’s passive infrastructure portfolio of 2,890 sites for $575 million and representing an enterprise value of $615 million, including the Group’s estimate costs and capitalised leases of $40 million.
The Africa-focused mobile phone tower developer said it had previously intended to be the sole purchaser, but then agreed to purchase 70% of the newly-incorporated holding company. Helios Towers explained that the rationale for the partnership was to combine the operational expertise of Helios with the local and regional expertise of Rakiza Telecommunication Infrastructure LLC (Rakiza), a wholly-owned subsidiary of Oman Infrastructure Fund (Rakiza Fund) which will hold the remaining 30 per cent.
The target assets are expected to deliver annual revenue of $59 million and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $40 million in the first full year of operations with further growth anticipated through collocation lease-up and 300 build-to-suit sites committed over the next seven years, for which $35 million growth capex is expected to be invested.