Axtel sells mobile sites to American Tower

Axtel sells mobile sites to American Tower

Mexican operator Axtel has entered into an agreement to sell 883 of its tower sites for approximately $250 million to a subsidiary of American Tower Corp.

Under the deal Axtel will lease back space on the sites from MATC Digital for initial minimum lease terms from six to 15 years depending on the technology at each site.

“We are very pleased with the tower sale transaction. Not only because it is a key element of the recapitalisation strategy we announced mid last year, but also because we are partnering with American Tower, a world-class company that will significantly contribute to enhance our operating performance,” said Felipe Canales, CFO at Axtel.

“We are also in the final stage of successfully closing the notes’ exchange offer. This will strengthen Axtel’s capital structure and permit the company to continue implementing its key strategic initiatives.”

The transaction is subject to conditional approval and expected to close on January 31.