The shares of Airtel Africa hit an all-time high price of N1,050.50 on Wednesday, gaining a maximum of 10 percent.
Earlier on Wednesday, the telecommunications company announced the first closing of the transaction to sell its tower assets in Tanzania to SBA Communications Corporation.
The gross consideration for the transaction is $176.1 million, according to a statement filed on the Nigerian Exchange (NGX) Limited.
“The gross consideration for the transaction will be $176.1m. Under the terms of the transaction, Airtel Africa’s subsidiary in Tanzania will continue to develop, maintain and operate its equipment on the towers under separate lease arrangements, largely made in local currencies, with the Purchaser,” the company said.
“With first closing, approximately $159m of the proceeds for the transaction has now been paid, with the balance payable in instalments upon the completion of the transfer of remaining towers to the Purchaser.”
The company said approximately $60 million from the proceeds will be used to invest in network and sales infrastructure in Tanzania with the balance used to reduce debt at the Group level
“Around $60m from the proceeds will be used to invest in network and sales infrastructure in Tanzania and for distribution to the Government of Tanzania, as per the settlement described in the Airtel Africa IPO Prospectus document published in June 2019. The balance of the proceeds will be used to reduce debt at Group level,” it added.
At the close of trading, the all-share index o advanced 1.05 percent — the highest in seven weeks.
BUA Foods, a newly listed company, was the most traded stock by volume and value at 1.006 billion units and N40.53 billion, respectively.
Airtel Africa (+10.0%) and BUA Foods (+10.0%) were the top gainers, while Neimeth and Courtville recorded the largest losses of the day.