Tigo El Salvador to sell back towers to SBA for $145m
Millicom’sTigo El Salvador has signed an agreement to sell up to 800 wireless communications towers to a subsidiary of SBA Communications Corporation (SBA) for $145 million.
The all-cash long term agreement, will give the Millicom subsidiary wireless communications towers from Tigo El Salvador to support the company's wireless networks and rollout plans.
Commenting on the deal, Mauricio Ramos, chief executive officer of Millicom, said: "We continue to deliver towards our strategy of growing our mobile data and cable revenue with a focus on Latin America, while enhancing our capital efficiency. Our agreement with SBA, which has a significant presence throughout the Americas, is in alignment with this strategy and with our aim to work with strong partners that can help us provide superior connectivity to our customers in the region."
The agreement is set to create savings in both capital and operating expenditures for Tigo El Salvador, the exact number of towers and the final purchase price have yet to be determined and is subject to the usual closing conditions
In related news Millicom struck a deal with Bharti Airtel in December that sees Airtel acquiring a 100% stake in Millicom’s Tigo Rwanda. The deal is set to make Airtel a strong number two player in the Rwandan telecoms market.
At the time Ramos said: "The sale of our business in Rwanda is in line with our strategy to focus on providing advanced fixed and mobile data services in Latin America. We are very grateful to the government of Rwanda for their support throughout the last eight years, which allowed us to extend digital inclusion to thousands of Rwandans