Wed, Oct. 21, 8:59 AM
- American Tower (NYSE:AMT) is up 1.4% premarket after taking a controlling interest in Viom Networks, which owns and runs a portfolio of 42,200 towers and 200 antenna systems across India, for 76B rupees ($1.17B).
- The move adds substantially to American Tower's holdings of about 97,000 communications sites. American Tower may acquire the rest, or be required to acquire the rest under some conditions.
- Also, after merging its existing 14,000 Indian towers with Viom's, some adjustments may be required for ownership in country. Tata Teleservices and private-equity firms will retain some minority holdings.
- American Tower expects the deal to be immediately accretive to its AFFO/share. In its last quarter, Viom drew about 50B rupees ($767M) in revenue and had about 21B rupees ($322M) in gross margin.
- The deal's expected to close in mid-2016. American Tower says it intends to maintain its investment grade rating while financing the deal.
Wed, Jun. 17, 3:13 PM
- Macquarie Group is the latest in talks to acquire Brazilian cell tower operator Grupo TorreSur, with a reported bid that exceeds $1B including debt.
- A Macquarie infrastructure fund joins American Tower (NYSE:AMT) as a suitor for the tower company, which is now in a full-fledged sale process run by Providence Equity Partners.
- Grupo TorreSur owns and operates more than 6,000 towers in Brazil.
- Previously: Crown Castle closes $1.6B sale of Australian unit (May. 28 2015)
Fri, May 22, 11:46 AM
- India cellular operator Idea Cellular (OTC:ICLQY) is looking at reducing a debt of 140B rupees ($2.21B) with a sale of its 11,000 cell towers for 75.8B rupees ($1.2B), with three potential buyers: Axiata Group (OTCPK:AXXTF), Bharti Infratel (OTC:BHRYY), and American Tower (NYSE:AMT).
- Idea's towers have been the subject of several deal attempts over the past few years.
- The new talk comes as tower sales heat up worldwide, including Telecom Italia's plans to sell 40% of its Inwit subsidiary, and America Movil's spinoff of its towers unit.
- American Tower closed its $5B tower-site takeover from Verizon in March.
- Previously: Advisers: TI's towers stake could draw €970M (May. 22 2015)
Nov. 24, 2014, 11:27 AM
- American Tower (AMT +0.2%) hasn't disclosed how much it's paying to buy Airtel's Nigerian tower portfolio. Airtel's Nigerian unit will act as the portfolio's anchor tenant, courtesy of a 10-year lease. (PR)
- AMT CEO Jim Taiclet: "With the largest population and economy in Africa and relatively underdeveloped wireless infrastructure, we view Nigeria as a tremendous growth opportunity. Further, we expect this investment to support our long-term objective of generating double-digit AFFO per share growth for our stockholders."
- The agreement comes on the heels of a $1.2B deal to buy 6,480 Brazilian towers from TIM Participacoes.
- Update: AMT discloses in an 8-K it's paying $1.05B for the Nigerian towers.
Nov. 21, 2014, 6:36 PM
- American Tower (NYSE:AMT) is buying 6,480 towers from TIM Participacoes (NYSE:TSU) for R$3B ($1.2B), slightly more than the ~$1.1B previously reported by Reuters. AMT "intends to finance the acquisition in a manner consistent with its previously announced leverage targets."
- The towers are expected to produce R$435M/year ($171M/year) in revenue, and R$191M/year ($75M/year) in gross margin. TIM has agreed to 20-year leases for the towers, and will act as their anchor tenant.
- AMT has already bought Brazilian towers from NII Holdings, and acquired local tower owner BR Towers. The company also bought 666 Brazilian towers in 2011, a transaction Muddy Waters took aim at.
- Altogether, AMT owned/operated 69.5K towers at the end of Q3.
Nov. 21, 2014, 3:48 AM
- Telecom Italia (NYSE:TI) will likely sell the mobile phone towers of its Brazilian unit TIM Participacoes (NYSE:TSU) to American Tower (NYSE:AMT) for almost €900M ($1.1B), says Reuters quoting two sources.
- Yesterday, Telecom Italia was reported to be weighing a deal between TIM and Brazil's Oi (NYSE:OIBR), saying it would ask its board for support today to "explore a potential transaction".
- Previously: Oi, PT rally; Telecom Italia reportedly weighing deal
Sep. 23, 2014, 6:13 PM
- Verizon (NYSE:VZ) has hired boutique i-bank TAP Advisors to find a buyer and work out a lease-back agreement for its 12K wireless towers by year's end, Bloomberg reports. It adds a deal could yield $6B, given how much AT&T received per tower in last year's $4.83B sale/leasing deal with Crown Castle (NYSE:CCI).
- Crown Castle, American Tower (NYSE:AMT), and SBA (NASDAQ:SBAC) have all been buying towers at a heady pace. However, the rising debt loads produced by the purchases could make one or more of the companies respond cautiously to Verizon's move.
- Verizon, for its part, is looking to de-leverage some after raising over $60B in debt to help pay for the Vodafone deal. The carrier had $104.2B in net debt at the end of Q2.
Sep. 3, 2014, 12:59 PM
- With American Tower (AMT -0.7%) up 24% YTD going into day, Morgan Stanley's Simon Flannery now considers shares fairly valued, and is downgrading them to Equal-Weight. His target is at $98.
- AMT is 5 weeks removed from posting a Q2 beat and guidance hike. Flannery still thinks emerging markets (previous) could act as a growth driver for the cell tower owner.
Jun. 16, 2014, 6:58 AM
- BR Towers S.A. owns about 2,530 towers and the exclusive rights to another 2,110, and American Towers (AMT) is buying for about $978M.
- The towers are expected to generate about $131M in annual revenue and roughly $81M in annual gross margin. The deal is expected to be immediately accretive to adjusted FFO upon closing (anticipated in Q4).
- Source: Press Release
May 5, 2014, 3:10 PM
- Globes reports American Tower (AMT +1.6%) is talking with Israel's Cellcom (CEL -0.9%) and Pelephone Communications about buying their mobile sites and leasing them back.
- AMT, which posted a Q1 beat on Thursday, has been on an acquisition binge in recent years. The company agreed to buy giant U.S. cell tower owner Global Tower for $4.8B last year, and also paid $811M to buy and lease back Brazilian/Mexican towers from NII Holdings.
- Thanks to its acquisitions, AMT ended Q1 with $14.3B in debt, a sum offset by just $333M in cash/equivalents.
- Globes notes antitrust regulators have objected to Cellcom and Pelephone's plans to jointly build a 4G network, and that the carriers are looking for other ways to cut costs. The paper reported last month Cellcom is getting set to launch a pay-TV service in August.
Nov. 27, 2013, 1:27 PM
- Bloomberg reports Telecom Italia's (TI +0.2%) Brazilian unit (TSU -0.5%) is partnering with Morgan Stanley to find potential buyers for its 7K mobile towers, and that TI proper is "analyzing internally" how to unload its 12K Italian towers.
- American Tower (AMT -0.2%) is named as a potential bidder for the Brazilian assets, which one source thinks could fetch €700M ($951M).
- The report comes as expectations grow TI will eventually sell TSU, in which it owns a 67% stake, altogether. Major TI shareholder Telefonica wants to see a Brazilian sale, but TI has said there's currently no sales process underway.
- AMT is only two months removed from announcing a $4.8B deal to acquire major U.S. tower owner Global Tower Partners. Before that, the company struck an $811M tower purchase/lease-back agreement with NII Holdings for over 4,400 Brazilian and Mexican towers.
- Muddy Waters has been quite critical of an older Brazilian tower purchase deal carried out by AMT.
Sep. 17, 2013, 12:55 PM
- Bloomberg reports AT&T (T +0.6%) is looking for a buyer for its massive cell tower portfolio in a deal that could be worth $5B.
- American Tower (AMT -0.3%), Crown Castle (CCI +0.1%), and SBA (SBAC) are natural potential suitors for part or all of the portfolio. AMT is fresh off announcing a $4.8B deal to acquire private tower owner Global Tower, whose assets are mostly U.S.-based.
- AT&T has spiked slightly higher on the report. A tower sale would help Ma Bell pay down some of the $75.2B in debt it held at the end of Q2, and thus strengthen its balance sheet as it turns its eyes toward Europe.
- Back in March, RBC speculated AT&T could sell its tower assets for a "mid-$5 billion" or higher price tag.
Sep. 6, 2013, 10:15 AM
- SBA (SBAC +2.1%) and Crown Castle (CCI +3.2%) have joined American Tower (AMT +4.4%) in rallying following news AMT is acquiring giant private cell tower owner Global Tower Partners for $4.8B ($3.3B in cash + the assumption of $1.5B in debt).
- The WSJ reported a month ago Global Tower, controlled by a REIT managed by Macquarie, was being shopped. The company owns 5.4K U.S. towers and 500 Costa Rican sites, and also has management rights to 9K+ U.S. sites (mostly rooftop assets) and property interests in another 800.
- The deal is expected to close in Q4, and will increase the size of AMT's debt load to $10.3B (offset by just $1B in cash/investments). The announcement comes a month after AMT announced an $811M Mexican/Brazilian tower purchase/lease-back deal with NII Holdings (NIHD +1.4%), and 10 months after it reached a deal to buy 2K German cell sites from KPN for $502M. NII has additional tower assets that could be on the block.
- In July, Muddy Waters criticized the accounting behind an earlier Brazilian tower purchase by AMT. The company strongly refuted Muddy Waters' claims.
Sep. 6, 2013, 8:23 AM
- American Tower (AMT) announces it struck a deal to acquire Global Tower Partners through its parent company for $4.8B - consisting of cash and the assumption of debt.
- The company says it sees the deal adding $345M in 2014 revenue and $270M in gross margin to its portfolio and being immediately accretive to the firm's results.
- AMT +3.3% premarket.
Aug. 9, 2013, 1:54 PM
- NII Holdings (NIHD +1.1%) enters into a sale/leaseback agreement with American Tower (AMT +2%). The former will sell 2,790 towers in Brazil and 1,666 towers in Mexico to the latter for $811M and sign a minimum 12-year lease agreement with the option to renew.
- The sale of 4,000 of the towers will close in Q4.
- The transaction will boost NII's liquidity. The Latin American carrier had $5.7B+ in debt on its balance sheet as of June 30, and nearly $1.8B in cash/investments.
- NII will account for the newly-leased towers as capital leases, and expects the transactions to have a positive impact on OIBDA.
- The company has now executed on its two liquidity initiatives (outlined in the Q4 CC). The other initiative, a $700M debt refinancing deal, took place in May.
Aug. 6, 2013, 10:36 PM
- The WSJ reports private cell tower owner Global Tower Partners "is being shopped to larger rivals." Analysts think the company could fetch $4B.
- Global Tower, owned by funds managed by Australian i-bank Macquarie, owns/operates/leases 16K cell sites, 6.4K of which are in the U.S., Mexico, and Costa Rica.
- Publicly-traded tower owners American Tower (AMT - $27.8B market cap), Crown Castle (CCI - $20.5B), and SBA (SBAC - $9.5B) have all shown a willingness to grow their footprints via M&A (I, II, III).
- The recent performance of their shares could make a deal easier to come by. Likewise, the higher valuations being assigned to tower owners (fueled by expectations 4G investments/mobile traffic growth will keep demand strong) could be motivating Macquarie to put Global Tower on sale.
American Tower Corp is an owner, operator and developer of wireless and broadcast communications real estate. The Company's main business is leasing antenna space on multi-tenant communications sites to different providers.
Other News & PR