American Tower has expanded its operations in Brazil through the R$2.18bn (US$978m) acquisition of BR Towers, which operates more than 4,000 sites across the country.
It is buying the towerco from private equity firms GP Investments – which formed BR…
American Tower has expanded its operations in Brazil through the R$2.18bn (US$978m) acquisition of BR Towers, which operates more than 4,000 sites across the country.
It is buying the towerco from private equity firms GP Investments – which formed BR Towers in 2012 – and Bradesco BBI.
BR Towers owns approximately 2,530 towers, the bulk of which were bought from operator Vivo in 2012, and the rights to another 2,110, which it acquired from Oi last September.
In addition to the acquisitions, which cost a combined US$458m, BR Towers built more than 300 towers for operators.
American Tower expects the portfolio to generate US$131m in annual run rate revenues and US$81 in annual gross margin.
The Boston, Massachusetts-based tower giant was advised by Banco Santander on the deal. Kilpatrick Townsend & Stockton served as US legal advisor and Koury Lopes Advogados as Brazilian legal advisor.
BR Towers did not disclose its advisers but was previously reported to be working with Deutsche Bank.
The transaction is subject to regulatory approvals and other customary closing conditions, and American Tower expects it to close in the fourth quarter of 2014.
The deal could be the first of a flurry in Brazil. Providence Equity Partners is looking to dispose of Gruppo TorreSur, which has more than 6,000 sites and is the largest independent towerco in the country, and has hired Credit Suisse to assist with the sale process.
Meanwhile Telecom Italia is being advised by Morgan Stanley as it looks to offload TIM Brasil’s tower assets.
The Italian incumbent previously briefed that it expected to receive non-binding offers by the end of May and that there had been a high level of interest in the sites from both financial and strategic investors. Goldman Sachs’ Cell Cite Solutions and JP Morgan’s Brazilian hedge fund Gavea Investimentos have emerged as the leading bidders, according to reports.
