Summary
American Tower Corporation (AMT) has announced a significant acquisition in Mexico, entering into a definitive agreement to purchase 535 communication towers from NII Holdings, Inc. for an aggregate price of $100 million. This strategic move expands AMT's international footprint and network infrastructure. The transaction is structured for phased closings, with an initial $30 million expected by year-end 2002 and the remaining $70 million by the second quarter of 2003, subject to closing conditions. Beyond the tower acquisition, AMT has also committed to providing up to 250 additional cell sites for NII Holdings' network expansion. This includes a commitment for at least 100 co-locations on existing AMT towers and a build-to-suit program for the remaining 150 sites, to be completed over the next three years. The company plans to finance these acquisitions through the sale of non-core assets, indicating a strategic focus on its core telecommunications infrastructure business.
Key Highlights
- 1Agreement to acquire 535 communication towers in Mexico from NII Holdings, Inc. for $100 million.
- 2Transaction includes an agreement to provide up to 250 additional cell sites for NII Holdings.
- 3At least 100 of the additional cell sites will be co-locations on existing AMT towers.
- 4Build-to-suit program for up to 150 cell sites to be completed over three years.
- 5Acquisition to be funded by proceeds from non-core asset sales.
- 6First closing of approximately $30 million expected by year-end 2002.
- 7Second closing of approximately $70 million expected by the end of Q2 2003.