Telecom infrastructure giant American Tower (AMT) unveiled plans to purchase 2,500 towers from Telefónica’s Mexican subsidiary for about $500 million, excluding value-added tax. AMT said it has entered into definitive agreements with Pegaso PCS SA de CV and expects to acquire a substantial majority of the towers during the fourth quarter of this year, subject to regulatory approval and customary closing conditions.
American Tower Chairman, President and CEO James Taiclet said his company is continuing to strengthen its relationship with Telefónica and that the acquisition will nearly double AMT’s portfolio in Mexico and provide American Tower with a highly desirable network of sites in a key market.
Taiclet also said AMT’s experience with the local management team will secure strong growth with those towers as their customers in Mexico deploy new spectrum and next-generation wireless technologies.
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AMT is expanding its presence in Latin America. In June, American Tower bought more than 2,100 towers from telecommunications group Millicom International Cellular SA (MIC) subsidiary Colombia Móvil for $182 million in cash.
Currently, American Tower owns and operates about 40,000 communications sites in the United States, Brazil, Chile, Colombia, Ghana, India, Mexico, Peru and South Africa.
Earlier this month, American Tower and and MTN Group announced a definitive agreement to establish a joint venture tower company in Uganda (“ATC Uganda”). The venture is set to acquire all of the nearly 1,000 existing tower sites from MTN Group’s operating subsidiary in Uganda for about $175 million.
ATC Uganda will be managed by American Tower and will be controlled by a holding company in which American Tower will hold a 51% stake and MTN Group will have a 49% stake.
