ATC, MTN in $175m tower deal

The American Tower Corporation (ATC) and MTN Group Limited (MTN) have announced that they have entered into a definitive agreement to establish a new joint venture tower company in Uganda.

The new joint venture tower company, ATC Uganda will acquire all of the existing tower sites from MTN Group’s operating subsidiary in Uganda numbering approximately 1,000, for an agreed upon purchase price of up to approximately $175 million.

“ATC Uganda will be managed by American Tower, and will be controlled by a holding company of which American Tower will hold a 51% stake and MTN Group will hold a 49% stake. American Tower will pay approximately $89 million for its stake in the new holding company. MTN Uganda will be the anchor tenant, on commercial terms, on each of the towers being purchased,” said ATC in a statement December 8, 2011.

As part of the deal, ATC Uganda is expected to build approximately 280 tower sites for MTN Uganda over the next three years, as well as pursue opportunities to build tower sites for other wireless operators in Uganda.

The transaction is expected to close in the first half of 2012, subject to customary closing conditions, according to ATC.

By Ekow Quandzie