Millicom (Tigo) and SBA Communications agree to long-term partnership in Central America
Millicom (TIGO) has entered into an agreement with SBA Communications for a sale and leaseback of approximately 7,000 towers across Guatemala, Honduras, Panama, El Salvador and Nicaragua for $975 million, plus performance-based earn-outs. The deal includes a build-to-suit agreement for up to 2,500 additional sites. The transaction, expected to close in mid-2025, aims to optimize operational and capital efficiency while maintaining Millicom's position as the leading mobile network operator in Central America. The deal will make SBA Communications the leading tower company across Central America.
Millicom (TIGO) ha stipulato un accordo con SBA Communications per la vendita e il leasing di circa 7.000 torri in Guatemala, Honduras, Panama, El Salvador e Nicaragua per un importo di 975 milioni di dollari, oltre a guadagni basati sulle performance. L'accordo include un contratto per costruire fino a 2.500 siti aggiuntivi. La transazione, prevista per la conclusione a metà del 2025, mira a ottimizzare l'efficienza operativa e di capitale, mantenendo la posizione di Millicom come operatore di rete mobile leader in America Centrale. L'accordo renderà SBA Communications la principale azienda di torri in tutta l'America Centrale.
Millicom (TIGO) ha entrado en un acuerdo con SBA Communications para la venta y arrendamiento de aproximadamente 7,000 torres en Guatemala, Honduras, Panamá, El Salvador y Nicaragua por un total de $975 millones, más ganancias adicionales basadas en rendimiento. El acuerdo incluye un contrato de construcción para hasta 2,500 sitios adicionales. La transacción, que se espera que cierre a mediados de 2025, tiene como objetivo optimizar la eficiencia operativa y de capital, manteniendo la posición de Millicom como el operador de red móvil líder en Centroamérica. El acuerdo convertirá a SBA Communications en la principal empresa de torres en Centroamérica.
밀리콤 (TIGO)는 SBA 커뮤니케이션즈와 함께 과테말라, 온두라스, 파나마, 엘살바도르, 니카라과 전역에서 약 7,000개의 타워를 매각 및 임대하는 계약을 체결했습니다. 계약 금액은 9억 7천 5백만 달러이며, 성과 기반의 추가 수익도 포함되어 있습니다. 이 계약은 최대 2,500개 추가 사이트를 위한 맞춤형 건설 계약을 포함하고 있습니다. 이번 거래는 2025년 중반에 마무리될 예정이며, 밀리콤이 중미에서 선도적인 모바일 네트워크 운영자로서의 입지를 유지하면서 운영 및 자본 효율성을 최적화하는 것을 목표로 하고 있습니다. 이 거래를 통해 SBA 커뮤니케이션즈는 중앙 아메리카의 주요 타워 회사가 될 것입니다.
Millicom (TIGO) a conclu un accord avec SBA Communications pour la vente et le bail d'environ 7 000 tours à travers le Guatemala, le Honduras, le Panama, le Salvador et le Nicaragua pour un montant de 975 millions de dollars, plus des compléments basés sur la performance. L'accord comprend également un contrat de construction pour jusqu'à 2 500 sites supplémentaires. La transaction, qui devrait se conclure à la mi-2025, vise à optimiser l'efficacité opérationnelle et capitalistique tout en maintenant la position de Millicom en tant qu'opérateur de réseau mobile leader en Amérique Centrale. Cet accord fera de SBA Communications le principal opérateur de tours en Amérique Centrale.
Millicom (TIGO) hat eine Vereinbarung mit SBA Communications über den Verkauf und das Leasing von ca. 7.000 Türmen in Guatemala, Honduras, Panama, El Salvador und Nicaragua für insgesamt 975 Millionen US-Dollar getroffen, zuzüglich leistungsabhängiger Zusatzvergütungen. Der Vertrag umfasst auch eine Maßanfertigung für bis zu 2.500 zusätzliche Standorte. Die Transaktion, die voraussichtlich Mitte 2025 abgeschlossen sein wird, zielt darauf ab, die Betriebs- und Kapitaleffizienz zu optimieren und gleichzeitig die Position von Millicom als führender Betreiber mobiler Netzwerke in Mittelamerika zu sichern. Das Geschäft wird SBA Communications zum führenden Turmunternehmen in Mittelamerika machen.
- Sale and leaseback deal valued at $975 million plus potential earn-outs
- Agreement includes future expansion with 2,500 additional tower sites
- Monetization of non-core assets improves capital efficiency
- Maintains network control while generating significant cash proceeds
- Long-term lease obligations will create recurring expenses
- Loss of direct tower ownership and associated revenue streams
- Transaction completion delayed until mid-2025
- Deal subject to regulatory approvals and closing conditions
Insights
This major tower sale-leaseback deal worth
The deal structure, which includes an earn-out based on performance metrics, aligns interests between both parties and suggests confidence in future growth. For investors, this transaction represents a smart capital recycling strategy that could enhance return on invested capital while maintaining operational flexibility. The partnership with SBA Communications, a leading tower operator, adds credibility to the execution potential.
The expected closing in mid-2025 provides a clear timeline for investors to monitor progress and regulatory approvals across multiple jurisdictions.
The scale of this tower transaction, involving approximately 7,000 towers across five Central American countries, represents a significant infrastructure consolidation in the region. The deal positions SBA Communications as the dominant tower infrastructure provider in Central America, which could lead to operational efficiencies and improved network optimization.
The build-to-suit component for 2,500 additional sites is particularly noteworthy as it ensures controlled network expansion and demonstrates long-term commitment to market growth. This structure allows Millicom to focus on its core telecommunications services while leveraging SBA's expertise in tower management and construction.
Millicom (Tigo) and SBA Communications agree to long-term partnership in Central America
Luxembourg, October 28, 2024 – Millicom International Cellular S.A. (NASDAQ: TIGO) announces today that it has entered into an agreement with SBA Communications Corporation (NASDAQ: SBAC) to sell and leaseback a tower portfolio of approximately 7,000 towers in Guatemala, Honduras, Panama, El Salvador and Nicaragua for a total consideration of approximately
In addition, the parties have agreed to enter into a build-to-suit agreement under which SBA Communications will build up to 2,500 additional sites, further solidifying the partnership.
Marcelo Benitez, Chief Executive Officer of Millicom, commented, “We are pleased to partner with SBA Communications in this landmark tower transaction, a key element of Millicom’s strategy to unlock shareholder value. By monetizing non-core assets, we are optimizing our operational and capital efficiency, positioning the company for sustainable growth and long-term value creation. This agreement with SBA Communications strengthens our position as the leading mobile network operator in the region. We are committed to continue building and expanding our mobile coverage to empower communities, foster innovation and create new opportunities for economic development.”
Brendan Cavanagh, President & Chief Executive Officer of SBA Communications, stated “We are happy to join Millicom in announcing this transaction, which significantly enhances the longstanding relationship enjoyed between our companies. As a result of this transaction and the strength of our existing portfolio, SBA Communications will be the leading tower company across all of Central America and we are excited to support Millicom as a leading mobile network operator in advancing their network goals and enhancing connectivity throughout the region.”
The transaction is subject to regulatory approvals and other closing conditions and is expected to close in mid-2025.
J.P. Morgan and Lazard Freres acted as financial advisors to Millicom, and Winston & Strawn LLP acted as legal advisor in connection with the transaction. Goldman Sachs & Co. LLC acted as financial advisor to SBA, and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor.
Regulatory Statement
Certain of this information was, prior to this release, inside information and is information that Millicom is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact person set out below, at 9.01pm CET on October 28, 2024.
About Millicom
Millicom (NASDAQ U.S.: TIGO, Nasdaq Stockholm: TIGO_SDB) is a leading provider of fixed and mobile telecommunications services in Latin America. Through our TIGO® and Tigo Business® brands, we provide a wide range of digital services and products, including TIGO Money for mobile financial services, TIGO Sports for local entertainment, TIGO ONEtv for pay TV, high-speed data, voice, and business-to-business solutions such as cloud and security. As of June 30, 2024, Millicom, including its Honduras Joint Venture, employed approximately 15,000 people, and provided mobile and fiber-cable services through its digital highways to more than 45 million customers, with a fiber-cable footprint of about 14 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg.
Press: Investors:
Sofia Corral Michel Morin
Director Corporate Communications VP Investor Relations
press@millicom.com investors@millicom.com
About SBA Communications Corporation
SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 39,000 communications sites in 15 markets throughout the Americas, Africa and the Philippines, SBA is listed on NASDAQ under the symbol SBAC. Our organization is part of the S&P 500 and is one of the top Real Estate Investment Trusts (REITs) by market capitalization. For more information, please visit: sbasite.com
Contact Information:
Mark DeRussy, CFA Lynne Hopkins
Capital Markets Media Relations
561-226-9531 561-226-9431
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