The company will sell the 7,000 towers in the region to SBA for $975 million. According to Millicom, it is getting rid of some non-essential assets.
The Millicom (Tigo) telephone company has reached an agreement with SBA Communications to sell and lease 7000 towers it has in the region for $975 million.
The deal also includes building part of SBA of up to 2,500 more towers in the region.
Tigo, who is present in the region in Guatemala, Honduras, Panama, El Salvador and Nicaragua, said in a statement that the transaction is subject to regulatory approvals and is expected to close in mid-2025.
For his part, Marcelo Benítez, chief executive of Millicom, said that this transaction is “a key element of Millicom’s strategy to release value for shareholders. By monetizing non-essential assets, we are optimizing our operational and capital efficiency, positioning the company for sustainable growth and long-term value creation.
While Brendan Cavanagh, president and chief executive of SBA Communications, said that as a result of this transaction and the strength of our existing portfolio, SBA Communications will be the leading towers company throughout Central America and we are excited to support Millicom as a leading mobile network operator in advancing its network objectives and improving connectivity across the region.
According to Benitez, the company remains committed to strengthening its presence in the region and expanding its coverage.
In 2019 the company announced in El Salvador an investment of $500 million in the five-year period, involving $100 million per year for the construction of a data center, the modernization of the fixed network and the expansion of the mobile network necessary for 4G network technology.
Until last year, according to Millicom data they were leaders in cell phones in the Salvadoran market (number one), the seconds in cable service and the seconds also in Internet service.
This article has been translated after first appearing in La Prensa Grafica