Brazilian towerco T4U has reportedly postponed the pricing of its planned IPO for a month due to concerns over the outcome of the country’s presidential election.
Pricing of the R$500m (US$207m) listing was expected on 16 October, but a drop in…
Brazilian towerco T4U has reportedly postponed the pricing of its planned IPO for a month due to concerns over the outcome of the country’s presidential election.
Pricing of the R$500m (US$207m) listing was expected on 16 October, but a drop in Brazilian equity and currency markets in September weakened sentiment ahead of investor meetings, Reuters reported citing two sources with direct knowledge of the deal.
Bank of America Merrill Lynch, Itau BBA, UBS and Citigroup have been mandated to advise T4U, which is owned by Israeli holding company Fishman Group, on the deal.
The first round of Brazil’s general elections was held on 5 October. Since no candidate gained an over 50% majority, a second-round runoff will be held on 26 October, when current president Dilma Rousseff from the Workers’ Party will compete against Aecio Neves of the Brazilian Social Democracy Party.
T4U’s IPO comes at a time when rising demand for high-speed internet has fuelled growth in the Brazilian tower segment, prompting many mobile carriers to sell and lease back their towers in a bid to cut costs.
In June, American Tower acquired BR Towers, which operates more than 4,000 sites nationally, for almost US$1bn to expand its presence across the country.
Later in the month, SBA Communications bought 1,641 towers from local mobile operator Oi for US$530m.
T4U and Fishman Group did not respond to a request for comment.
