Helios Towers South Africa announces the closing of its first transaction
The partnership with Vulatel acquires 13 fibre regeneration sites
Joint platform targets further wireless and fixed-line telecoms infrastructure investments in South Africa
Helios Towers Ltd. ("Helios Towers"), the independent telecoms tower infrastructure company, today announces the completion of the previously announced partnership agreement with Vulatel (Pty) Ltd ("Vulatel") to create a South African telecommunications infrastructure platform, Helios Towers South Africa ("HTSA").
As part of the strategy to invest into wireless and fixed-line open-access infrastructure in South Africa through the joint platform, HTSA has acquired 13 fibre regeneration sites across the country. The regeneration sites host equipment aimed at reducing signal degradation in fibre networks across significant distances around the country.
This investment enable HTSA to provide a new type of services to Mobile Network Operators ("MNOs"), addressing the evolving needs of its customers. It further illustrates Helios Towers' diversification into adjacent verticals in the telecoms infrastructure space. The company expects HTSA to keep expanding its neutral host fibre infrastructure product offering as data traffic growth accelerates.
Commenting on this agreement, Kash Pandya, CEO of Helios Towers said today:
"We are delighted to announce the acquisition of 13 regeneration sites across South Africa, the first by Helios Towers South Africa, our joint platform with Vulatel. Having closed on this first transaction with Vulatel, we look forward to continue delivering on our stated strategy of providing MNOs with open-access infrastructure in multiple verticals.
South Africa is a leader in telecommunications innovation on the continent, and other Sub-Saharan countries are already following similar trends, offering us further opportunities to leverage our fibre expertise in our other four markets alongside our already strong expertise in tower infrastructure."
|Edward Bridges / Stephanie Ellis||FTI Consulting LLP||+44 (0)20 3727 1000|
About Helios Towers ("HT")
- Helios Towers is a leading independent telecommunications tower infrastructure company in Africa, having established one of the continent's most extensive tower portfolio with over 6,700 towers across four countries. It builds, owns and operates telecom passive infrastructure, providing services to mobile network operators.
- It owns and operates more sites than any other operator in each of Tanzania, Democratic Republic of Congo ("DRC"), and Congo Brazzaville. It is also a leading operator in Ghana with a strong urban presence.
- Helios Towers established a presence in South Africa in 2019 through Helios Towers South Africa, a joint platform with Vulatel.
- The Group pioneered the sale-leaseback model in Africa, 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.
- Investors in the company include: Helios Investment Partners, Quantum Strategic Partners, Albright Capital Management LLC, RIT Capital Partners Plc, the International Finance Corporation and Millicom International Cellular.
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- Vulatel offers end-to-end telecoms network solutions in South Africa, including planning, designing, implementing, testing, certifying and maintaining long-haul, metro, access and FTTX network. It delivers networks and services that provide unrivalled quality of service to network owners, service providers and corporates.
- It began operations in 2017 on the back of acquiring Dimension Data's fibre and wireless division (formerly Plessey South Africa) and has grown rapidly through organic growth supported by the acquisition of Gio Construction, a provider of network deployment and maintenance services.
- Vulatel is a 69% black owned and 45% black women owned business with a Level 2 B-BEE rating.
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