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The deal will make SBA Communications “the leading tower company across all of Central America”, according to CEO Brendan Cavanagh
Florida-based tower infrastructure company SBA communications has purchased 7,000 telecoms towers situated across South America from Millicom, in a deal worth $795 million.
The sites are located in Guatemala, Honduras, Panama, El Salvador, and Nicaragua, and are expected to bring SBA an annual revenue of $129 million, with $89 million projected in cash flow in their first full year, according to the company.
Millicom will continue to be served by the sold sites, with signing a leaseback agreement with SBA for 15 years. The agreements will also extend the current leases on 1,500 sites with SBA for another 15 years.
“As a result of this transaction and the strength of our existing portfolio, SBA Communications will be the leading tower company across all of Central America,” said Brendan Cavanagh, President & CEO of SBA Communications in a press release.
“By monetizing non-core assets, we are optimizing our operational and capital efficiency, positioning the company for sustainable growth and long-term value creation,” added Marcelo Benitez, CEP of Millicom in a statement.
The transaction is subject to regulatory approval, expecting to close in mid-2025.
Currently, SBA either owns or operates 39,762 communication sites, with over 17,000 located in the US and 22,200 internationally.
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Publish date : 2024-10-28 13:00:00
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