[Kenya] Everstrong makes majority equity investment in SealTowers
SealTowers, a Kenyan cell tower company, and Everstrong Capital, have announced the signing of an agreement that will see Everstrong making a majority equity investment in SealTowers. The investment, structured through the Everstrong Kenya Infrastructure Fund, will form part of the $12.5 million financing required to facilitate a tower roll-out programme with a target of reaching 200 tower sites in the next two years.
Everstrong Kenya Infrastructure Fund is a $50 million fund, sponsored by US-based Everstrong Capital, that is focused on investing in infrastructure assets in energy, transport, communication, and social infrastructure sectors in Kenya and East Africa.
Started in 2016, SealTowers was established to build, own, lease, and manage telecommunication towers and infrastructure for Kenya’s telecoms service providers. The company has running Framework Build and Lease contracts with 5 major mobile and internet service providers (ISPs) in Kenya allowing them to host telecom equipment on Seal Towers-owned infrastructure.
Everstrong’s investment comes at a critical time and aims at supporting widespread access to ICT services and addressing gaps in network coverage across Kenya, including SealTowers’ participation in the Communication Authority’s (CA) Rural Tower Expansion Project 2021/2022.
“We believe that the partnership with Everstrong Capital will enable us to tap into massive opportunities in the telecommunications sector in both urban and rural locations. The expansion of 4G and 5G networks will require many more infill tower sites to support networks. In addition, large buildings, malls, commercial and educational institutions provide an opportunity for in-door network solutions and provide expansion opportunities for SealTowers,” said Dr Tony Monda, the Founder and CEO of the company.
Telecommunications service providers are increasingly outsourcing infrastructure solutions, thereby setting them free to focus on their core businesses. The partnership is a major milestone for SealTowers as they aim to provide critical infrastructure to their clients, enabling them to lower operating costs and expand network coverage and capacity.
“Our partnership with Everstrong sends a strong signal to our clients that SealTowers is ready to be a critical infrastructure solution partner in their growth,” said Dr Monda.
The management teams of both Seal Towers Ltd and Everstrong Capital are aligned to streamline operations, provide quality tower technology and to achieve world-class business excellence. According to Philip Dyk, the Managing Partner of Everstrong Capital: “We are excited to announce this investment in SealTowers Limited and look forward to helping expand network access throughout the country. The Everstrong team brings to the table a wealth of experience and skill in structuring, capitalizing, and managing companies, while leveraging SealTowers expertise in telecommunication, tower design, engineering, deployment and management.”