Through the deal, Helios Towers will enter the Middle East infrastructure market, becoming a leading independent tower infrastructure provider in Oman with 2,890 sites.
The portfolio is expected to make revenues of $59 million and an adjusted EBITDA of $40 million in its first year. Further growth is expected through colocation lease-up and 300 build-to-suit (BTS) sites committed over the next seven years, for which $35 million growth capex is expected to be invested.
“We are delighted to announce the creation of our long-term partnership with Omantel through this transaction. We view Oman as a very attractive and supportive market for foreign investments, with strong growth and exciting future prospects. We will be further investing capital in Oman as we add to the tower count through greenfield BTS site development and colocations, enhance the current tower portfolio and develop a talented local Omani team,” said Kash Pandya (pictured), chief executive officer of Helios Towers.
“Through the acquisition, which establishes us as a leading tower operator in Oman, we expect to achieve our Group target of 12,000+ towers well ahead of plan, while also strengthening our business through further hard-currency revenues and diversification into one of the fastest growing markets in the Middle-East.”
The acquisition forms part of Helios Towers’ new market and strategic growth strategy and is expected to boost Helios’ earnings expand the company’s geographic presence.
In addition, once completed Helios Towers and Omantel will enter into a long-term service contract for a period of 15 years.
“The sale of our passive tower infrastructure is in line with our strategy to develop world class asset light, strategic and advanced communications networks in Oman and to generate the greatest value and efficiency for the benefit of our shareholders, customers and partners,” said Talal Said Al Mamari, chief executive officer of Omantel.
“This strategic partnership invites Foreign Direct Investment (FDI) in Oman, supporting Oman as a leading FDI destination in the GCC, while creating jobs and opportunities in the country. This move also allows the monetisation of our towers at attractive valuation levels, de-lever our balance sheet and will accelerate network development in next generation advanced technologies while enabling management to focus on innovation and product development while outsourcing non-core infrastructure management to a world-class infrastructure management firm – Helios Towers.”
The transaction is due to close by the end of 2021, subject to approval from Helios Towers’ shareholders and customary closing conditions including approval from the Telecoms Regulatory Authority of Oman.
