American Tower Corp to buy Cell C’s towers
Cell C to sell 3,200 towers in South Africa to American Tower Corp
American Tower Corporation, a Boston-based wireless communications sites operator, has agreed to buy up to 1,400 cell towers from South African mobile operator, Cell C.
As part of the deal, American Tower Corp will also acquire up to 1,800 additional towers that are either under construction or to be constructed in the next two to three years.
The total deal is worth some $430 million, and the deal for the existing towers is expected to be closed by early 2011.
Jim Taiclet, chairman, president and CEO of American Tower Corp said: "We believe South Africa provides a compelling investment opportunity for us, with strong demand for voice and advanced wireless data services. In addition, our newly established presence in South Africa will provide us with a platform for our future growth in the region."
Under the terms of the agreement, Cell C will be the anchor tenant on each of the towers being purchased.
Lars Reichelt, CEO of Cell C said: "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." He added that Cell C's relationship with American Tower Corp will enable it to further enhance its network quality and coverage.
Launched in 2001, Cell C is South Africa's third cellular operator and has more than seven million subscribers.
American Tower Corp currently owns and operates about 33,000 communications sites in the US, Brazil, Chile, Colombia, India, Mexico and Peru.