Emerging markets operator Millicom would consider further deals with towercos, according to the company’s CEO and president.
Hans Holger Albrecht said sale-and-lease-back transactions with tower operators were “part of the optimisation game”, and…
Emerging markets operator Millicom would consider further deals with towercos, according to the company’s CEO and president.
Hans Holger Albrecht said sale-and-lease-back transactions with tower operators were “part of the optimisation game”, and would therefore be considered where they made sense.
In July 2011 Millicom sold more than 2,000 towers of its Colombian subsidiary Colombia Movil to American Tower for US$182m.
According to Albrecht such decisions needed to be made on a market-by-market basis, adding that on a general level tower deals are more attractive for number two players than for market leaders.
He did not give specifics about markets where the company could seek lease-back deals.
Announcing a new five-pillar strategy that will include growth areas such as mobile financial services and other digital offerings in mobile health, learning and classifieds, Millicom also said it would continue to grow through acquisitions. The focus of M&A activity would be on in-market consolidation where Millicom is already active, including fixed/mobile integration.
Speaking about the merger of its operations in Colombia with cableco UNE, Albrecht said talks were continuing. While refusing to reveal the deal value, he said that even after a deal Millicom’s debt/EBITDA ratio would stay below 1.5x.
A US$500m bond of its Millicom Africa subsidiary announced early this year was postponed following faster than anticipated progress with the UNE transaction. The company is under no pressure and has no significant maturities coming up in the near future, Albrecht said.
