Telecoms tower provider, Atlas Tower Pty Ltd., said it is selling off its entire South African tower portfolio to SBA Communications.
The transaction value of the disposal is estimated at ZAR2 billion will see the telecoms company dispose of more than 900 towers in South Africa.
In a report by Bloomberg, Atlas chief executive officer Nathan Foster said in an interview in Johannesburg. The agreed price takes account of previous investments made by the buyer into Atlas’s business, he said.
“This will be the first African-focused sale for Atlas Towers,” the CEO said.
Analysts concede that the rising demand for high-speed internet across Africa has made the tower industry a hotbed for deal making, with wireless carriers looking to sell out to specialist providers. South Africa is seen as a particularly attractive market, as the country is looking to start 5G services over the next two years.
One of its major competitors, Helios Towers raised $364 million in a London share sale earlier this month as investors looked to capitalise on the growth of tower services in countries such as Tanzania, Ghana and South Africa. Also, American Tower agreed to buy Eaton Towers for about $1.85 billion in May to combine resources on the continent.