Thursday, January 28, 2010

Tigo Ghana Sells 750 Towers To Helios

Millicom Ghana (trading as Tigo) has agreed to sell approximately 750 towers to Helios Towers Ghana, a direct subsidiary of Helios Towers Africa. As a result of the transaction, Tigo Ghana will retain a minority interest in HTG.

Additionally, Tigo Ghana and Helios Towers have entered into a long term leasing agreement where Helios Towers will provide Tigo Ghana with wireless communications towers, including a build-to-suit agreement to support the company's wireless networks. Helios Towers will seek similar agreements with other operators in Ghana. The transaction is expected to create savings in both capital and operating expenditure for Tigo Ghana.

Mikael Grahne, President and CEO of Millicom, said: "This agreement marks our first substantial commitment to outsourcing passive infrastructure, and is entirely consistent with our strategy of improving both our capital and operating efficiency by focusing on our core activities. Operators around the world are increasingly recognising that owning and operating all of their own network infrastructure does not confer a competitive advantage. The new venture will allow Tigo Ghana to focus on areas of genuine differentiation: sales, marketing, distribution, service innovation and customer care."

The specific number of towers and final purchase price will be determined at closing. First closing of the transaction, subject to customary closing conditions, is expected to take place in approximately 90 days.

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