Liberty Latin America (LLA) will sell 1,300 mobile tower sites across Panama and various Caribbean islands to independent tower company Phoenix Tower International (PTI) in a deal valued at $407 million.
Under the deal, PTI will acquire LLA’s tower sites in Panama, Jamaica, the Bahamas, Puerto Rico, Barbados and the British Virgin Islands. LLA will continue to use the sites under long-term master lease agreements for each market included in the transaction terms.
The $407 million figure also includes an agreement by LLA and PTI to build another 500 towers in those markets over the next five years.
PTI CEO Dagan Kasavana said the deal will strengthen its presence in existing markets and enable new market expansion in the Bahamas, British Virgin Islands and Barbados.
LLA president and CEO Balan Nair, said the company will use the proceeds from the PTI deal to reduce debt and further invest in its businesses.
“The long-term lease agreements and ongoing coverage extension will enable us to continue delivering leading mobile services to our customers and support network expansion including future 5G deployment plans across the Caribbean and Latin America, while lowering capital costs associated with these assets,” Nair said in a statement.