American Tower Corporation and Cell C Limited have entered into an agreement for the sale of up to 1400 of Cell C’s existing cellular towers, and up to 1800 additional towers that are either under construction or to be constructed over the next two years. This for an aggregate purchase price of up to approximately $430 million.
The companies expect to close the sale of the existing towers by early 2011, subject to customary closing conditions, with Cell C the anchor tenant on each of the towers being purchased.
“We are pleased to announce the launch of our operations in South Africa, as well as the opportunity to work with Cell C,” said Jim Taiclet, chairman, president and CEO of American Tower. “We believe South Africa provides a compelling investment opportunity for us, with strong demand for voice and advanced wireless data services.”
American Tower currently owns and operates approximately 33,000 communications sites in the United States, Brazil, Chile, Colombia, India, Mexico and Peru.
Lars Reichelt, CEO of Cell C, SA’s third cellular operator, commented, “This is an important strategic transaction for Cell C, allowing us to realise the value embedded in our passive infrastructure, which has undergone a significant transformation over the past few years. We believe our relationship with American Tower will enable us to further enhance the quality and coverage of our network.”