07 May 2018
Nairobi: May 7, 2018: Integrated telecommunications service provider, Telkom Kenya (TKL) and global tower company, American Tower Corporation (ATC) today announced that they have reached a definitive agreement for ATC to acquire up to 723 towers from TKL in Kenya.
Telkom Kenya’s Board Chair, Eddy Njoroge stated that TKL was delighted to have signed the agreement with ATC and looked forward to a close collaboration between the two companies. “The Board of TKL has made it clear that our objective is to transform Telkom into a business which has a reputation for excellence in terms of the quality and reliability of its network. This agreement, in which we will be partnering with a leading global tower company, will enhance the quality and reliability of our network to the benefit of our customers.”
William H. Hess, ATC President of EMEA and Latin America stated, “We are excited to announce the launch of operations in Kenya through our agreement to acquire TKL’s towers. This represents American Tower’s 17th market globally, and our fifth in Africa, and we look forward to helping expand the reach of mobile broadband throughout the country. Kenya is a very attractive market, and we have high expectations for its long-term growth potential.”
Aldo Mareuse, CEO of TKL, added: “The network availability and service levels we have agreed with ATC are world class and this agreement represents another important step towards the transformation of this business and the service levels we deliver to our customers. Telkom will now focus on its core function – the provision of quality telecommunications services to our customers. In addition, the sale will release capital for further investment in our 4G network and a number of state of the art IT platforms, all of which will further enhance services for our customers as they demand higher quality and speed from our mobile data networks as well as a richer range of services.”
The transaction is expected to close in the second half of 2018, subject to customary closing conditions and regulatory approval.
Telkom connects the people that keep Kenya on the move. It does this by providing integrated telecommunications solutions to individuals, Small and Medium-sized Enterprises (SMEs), Government and large corporates in Kenya, drawing from a diverse solutions suite that includes voice, data, mobile money as well as network services. Powered by its vast fibre optic infrastructure, it is also a major provider of wholesale, carrier-to-carrier traffic within the country and the region.
Telkom is building on a strong, consumer-centric ethos that is committed to providing innovative, accessible and refreshingly simple communications solutions that suit customers’ everyday communication needs.
Established as a telecommunications operator in April 1999, Telkom is 60 per cent owned by Helios Investment Partners, with the remaining stake held by Kenyans through the Government of Kenya.
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About American Tower
American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of over 160,000 communications sites.
Cautionary Language Regarding Forward-Looking Statements
This press release contains statements about future events and expectations, or “forward-looking statements,” all of which are inherently uncertain. American Tower has based those forward-looking statements on its management’s current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, our expectations regarding the timing of the closing of the transaction. These forward-looking statements involve a number of risks and uncertainties. For important factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the information contained in Item 1A of American Tower’s Form 10-K for the year ended December 31, 2017 under the caption “Risk Factors” and in other filings we make with the Securities and Exchange Commission. We undertake no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.