AT&T is reportedly preparing a sale of its tower portfolio, estimated at 10,000 sites, which could bolster its balance sheet to the tune of US$5bn.
The US incumbent has mandated JP Morgan and TAP Advisors to enact the disposal, according to people…
AT&T is reportedly preparing a sale of its tower portfolio, estimated at 10,000 sites, which could bolster its balance sheet to the tune of US$5bn.
The US incumbent has mandated JP Morgan and TAP Advisors to enact the disposal, according to people familiar with matter cited by Bloomberg.
Earlier this year the company said it was open to selling what it considered to be non-core assets to raise funds. New Street Research analyst Jonathan Chaplin has previously said he felt that AT&T’s management was worried that rates on sites would continue to rise, reducing a potential sale price down the line.
The US’ three largest tower companies – American Tower, Crown Castle and SBA Communications – have been tipped as potential acquirers. American Tower recently bought 100% of Global Tower Partners (GTP) in a US$4.8bn deal and agreed a sale-and-lease-back transaction with NII Holdings for US$811m.
AT&T declined to comment on the report.
The telco could use the funds for its planned US$14bn network upgrade and up to US$11bn stock repurchase. It also said it is examining potential acquisitions in Europe as expansion abroad looks almost inevitable.
Enterprise tie-up with AMX in LatAm
AT&T has also revealed a partnership with America Movil (AMX), continuing their long-standing relationship.
Under the agreement, AT&T will be able to offer its enterprise services to business customers across 15 Latin American countries. The incumbent will be allowed to use more than 91,000 miles of America Movil’s fibre optic network in the region and 12 data centres across Latin America.
Financial details of the deal were not disclosed.
With a 9% stake, AT&T is the Mexican operator’s second largest shareholder behind Carlos Slim.
Jeffery McElfresh, president of AT&T Mexico, and Michael Viola, AT&T’s senior vice president of corporate finance, both sit on AMX’s board.