American Tower Corporation and South Africa’s MTN Group have agreed to create a tower joint venture in Ghana.
TowerCo Ghana, which will be managed by American Tower, will buy up to 1,876 of MTN Ghana’s sites for up to US$428.3m. The operating entity will…
American Tower Corporation and South Africa’s MTN Group have agreed to create a tower joint venture in Ghana.
TowerCo Ghana, which will be managed by American Tower, will buy up to 1,876 of MTN Ghana’s sites for up to US$428.3m. The operating entity will be owned by a holding company in which American Tower will hold a 51% stake and MTN a 49% stake. The US-based company will pay up to about US$218.5m for its controlling stake.
TowerCo Ghana plans to build at least 400 new sites over the next five years. The network will be leased to MTN Ghana but will also be open to other mobile operators.
The transaction is expected to close by early 2011.
MTN Group president and CEO, Phuthuma Nhleko said: “We have in the recent past looked at various permutations to reduce our infrastructure roll-out costs as well as the on-going costs of operating our passive infrastructure in our key markets. Because market conditions in each of the markets are unique, we have resolved to evaluate infrastructure sharing opportunities on a market by market basis. The Ghanaian market has presented us with an opportunity to partner with a leading independent global tower operator. We have already established a good working relationship with the team at American Tower, who have demonstrated their extensive experience in operating towers in both the developed world and in emerging markets.”
