by Benedict Chua, Assistant Editor
American Tower has reached an agreement to acquire with MTN Group’s minority stakes in joint ventures in Ghana and Uganda for total consideration of approximately $523 million. The transaction is expected to close in the first quarter of 2020, subject to regulatory approval, and will result in a one-time impact for American Tower of approximately $65 million in 2020 from the payment of previously deferred cash interest related to joint venture debt.
In addition, American Tower recently closed its previously announced acquisition of Eaton Towers, adding approximately 5,700 communications sites to its African portfolio. Total consideration for the acquisition, subject to certain post-closing adjustments, was approximately $1.85 billion.
American Tower to acquire 5,500 sites in five African markets
American Tower agreed to acquire Eaton Towers, which owns and operates approximately 5,500 communications sites across five African markets, for approximately $1.85 billion. American Tower expects to accelerate new build activity across the region due to expanded relationships with multiple key tenants.
The Eaton towers are located in Ghana, Uganda, Kenya, Burkina Faso and Niger. Eaton Towers was co-founded in 2009 by Terry Rhodes, CEO. Alongside the majority shareholder, Capital International, investors include Development Partners International, Ethos and Standard Chartered.
American Tower said the Eaton assets are expected to generate approximately $260 million in property revenue and approximately $165 million in gross margin, at current exchange rates, in their first full year in American Tower’s portfolio.
Jim Taiclet, American Tower’s Chief Executive Officer stated, “This transaction will significantly augment our existing footprint in Africa and positions ATC to take even better advantage of the growth opportunity in the region as 4G mobile data technology is deployed to serve millions of Africans over the coming years.”
- American Tower’s global portfolio includes more than 177,000 sites.
