American Tower Corporation, an owner and operator of wireless and broadcast communications infrastructure in several countries worldwide, has announced two deals – involving Eaton Towers and MTN – that, it says, will boost its presence in Africa.
The company has closed its acquisition of Eaton Towers Holdings Limited, adding approximately 5,700 communications sites to its African portfolio. Total consideration for the acquisition, subject to certain post-closing adjustments, was approximately $1.85 billion, including the assumption of existing Eaton Towers debt.
Eaton Towers Holdings is a leading independent pan-African tower company with offices in Jersey, London, Dubai and Cairo, which owns and operates mobile telecom towers in Ghana, Uganda, Kenya, Burkina Faso and Niger.
American Tower has also reached an agreement with MTN Group Limited, the South African multinational mobile telecommunications company operating in many African, European and Asian countries, to acquire MTN’s minority stakes in each of the company’s joint ventures in Ghana and Uganda for a total consideration of approximately $523 million.
The transaction is expected to close in the first quarter of 2020, subject to regulatory approval, and will result in a one-time impact for American Tower of approximately $65 million in 2020 from the payment of previously deferred cash interest related to joint venture debt.