Millicom International Cellular (MIC) has announced that its Tanzanian subsidiary, Millicom Tanzania Limited, which trades as Tigo Tanzania, has agreed to sell approximately 1,020 towers to Helios Towers Tanzania (HTT), a wholly owned unit of Helios Towers Africa (HTA). Under the terms of the transaction MIC says Tigo Tanzania will receive a cash payment of at least USD80 million and will retain a ‘significant minority interest’ in HTT. Moreover, going forward the pair have entered into a long-term leasing agreement under which HTT will provide Tigo Tanzania with access to wireless communications towers and a build-to-suit agreement to support the company’s wireless network expansions. It is understood that HTT is also actively seeking similar agreements with other operators in Tanzania. The tower sale deal is expected to create savings in both capital and operating expenditure for the Tanzanian cellco. In a joint press release, the two firms said the specific number of towers and final purchase price will be determined ‘once the various closings have taken place’. First closing of the transaction, subject to customary closing conditions, is expected in Q2 2011.