The transaction will also extend coverage with a further 500 sites being built by LLA and PTI over the next five years. As part of the deal the total proceeds will increase to $407 million with net proceeds to be used to reduce debt and further invest in the LLA’s businesses.
“We are pleased to work with a high-quality partner with extensive operating experience in our region in PTI and reach an agreement that crystallizes the value of our mobile tower infrastructure assets,” said Balan Nair, president and CEO of Liberty Latin America.
“In addition, the long-term lease agreements and ongoing coverage extension will enable us to continue delivering leading mobile services to our customers and support network expansion including future 5G deployment plans across the Caribbean and Latin America, while lowering capital costs associated with these assets. This deal is a great example of our disciplined approach to delivering shareholder value through free cash flow accretive transactions.”
The deal also includes long-term master lease agreements in each market for the LLA’s continued use of the telecoms tower infrastructure once the transaction is completed.
The transaction is subject to standard closing conditions and government approvals. It is expected to complete within the next three to six months.
“PTI is excited to partner with Liberty Latin America and expand its presence in the Caribbean and Panama. This transaction strengthens PTI’s presence in existing markets while representing new market expansion for PTI in the markets of The Bahamas, BVI, and Barbados,” added Dagan Kasavana, chief executive officer of Phoenix Tower International.
“As the largest independent owner of wireless towers in the Americas, we look forward to enhancing wireless access in these markets by serving all our wireless customers and the populations of the region with better connectivity and solutions to help our business partners achieve their goals. We appreciate greatly the hard work of both teams to consummate this fantastic transaction.”
