American Tower and Millicom International Cellular S.A. through its subsidiary Colombia Móvil S.A. E.S.P has agreed to sell approximately 1,200 wireless communications towers to a subsidiary of the former, American Tower Corporation in Colombia.
As a result of the transaction, Tigo will receive approximately 448 billion COP, equivalent to US$147 million, in cash.
According to Millicom, Tigo and ATC have entered into a long-term agreement in local currency whereby ATC will lease to Tigo wireless communications towers to support its wireless networks. The specific number of towers and final purchase price will be determined once the various closings have taken place, which are subject to customary closing conditions and regulatory approval.
Speaking on the transaction, Mauricio Ramos, CEO of Millicom, said: “Colombia is our biggest operation in Latin
America, where we have a strong focus on remaining competitive by bringing advanced infrastructure and services to our customers. Similar to the Paraguay transaction that we announced in April, this new agreement with American Tower Corporation enhances our operational and capital efficiency, while also allowing us to invest in improving the connectivity experience for our customers. The lease obligation is denominated in Colombian pesos, consistent with our objective of increasing our proportion of financing in local currency.”
