MERGERS, ACQUISITIONS AND FINANCIAL RESULTS
MTN Uganda Sells 1,000 Towers to American Tower
USA based American Tower and South Africa's MTN Group have set up a joint venture tower company in Uganda, which will acquire all of the existing tower sites from MTN Uganda, numbering approximately 1,000, for an agreed upon purchase price of up to approximately US$175 million.
ATC Uganda will be managed by American Tower, and will be controlled by a holding company of which American Tower will hold a 51% stake and Mtn Group will hold a 49% stake. American Tower will pay approximately $89 million for its stake in the new holding company. MTN Uganda will be the anchor tenant, on commercial terms, on each of the towers being purchased.
American Tower also expects that ATC Uganda will build approximately 280 tower sites for MTN Uganda over the next three years, as well as pursue opportunities to build tower sites for other wireless operators in Uganda.
Upon the close of the transaction, ATC Uganda will be the largest owner and operator of tower sites in Uganda.
"We are pleased to announce the launch of our operations in Uganda, again in partnership with MTN, Africa's largest mobile operator," said Jim Taiclet, Chairman, President and Chief Executive Officer of American Tower. "Our strategy is to invest in select African markets with strong wireless growth potential and a positive investment climate. Our investment in Uganda is further evidence of our execution of this strategy. In addition, we are building upon our successful partnership with MTN in Ghana where our tower expertise, operational excellence and a focus on delivering growth and value from the asset portfolio, are highly complemented by MTN's regional operational experience."