Kenyan mobile service provider firm, Telkom Kenya is set to hand over 723 of its telecommunication towers to a United States company, American Tower Corporation (ATC) after the two firms signed an agreement for an undisclosed amount.
The deal will grow the multinational’s presence in the East Africa region after it made similar acquisitions in neighbouring Uganda and Tanzania about 10 years ago.
“On April 3, 2018, the company, (American Tower Corp) through its recently formed Kenyan subsidiary, (AT Kenya C.V) entered into a definitive agreement with Telkom Kenya Limited to acquire up to 723 communications sites,” said the firm in regulatory filings.
“The transaction is expected to close during the second half of 2018, subject to customary closing conditions, including the satisfaction of regulatory approvals,” it added.
The deal is expected to help third-placed Telkom Kenya, behind Safaricom and Airtel, strengthen its balance sheet. Telkom Kenya recently revealed its five-year strategy, where it looks to invest Sh15.2 billion ($150 million) in its 3G and 4G networks, mobile money services, as well as customer experience.
The company has already invested Sh5.6 billion in expanding and digitizing its network, including launching 4G services. It will also use Sh4.1 billion ($40 million) loan received from the European Investment Bank to bolster its infrastructure and mobile money network.
ATC, a Bolton-based telecommunication firm operates long-term lease arrangements with its partners.
