American Tower Corporation and MTN Group Limited today (9 December 2011) announced that they have entered into a definitive agreement to establish a new joint venture tower company in Uganda.
The new company which will acquire all of the existing tower sites from MTN Group’s operating subsidiary in Uganda, numbering approximately 1,000, for an agreed upon purchase price of up to approximately $175 million.
ATC Uganda will be managed by American Tower, and will be controlled by a holding company of which American Tower will hold a 51% stake and MTN Group will hold a 49% stake.
American Tower will pay approximately $89 million for its stake in the new holding company. MTN Uganda will be the anchor tenant, on commercial terms, on each of the towers being purchased.
American Tower also expects that ATC Uganda will build approximately 280 tower sites for MTN Uganda over the next three years, as well as pursue opportunities to build tower sites for other wireless operators in Uganda.
The transaction is expected to close in the first half of 2012, subject to customary closing conditions. Upon the close of the transaction, ATC Uganda will be the largest owner and operator of tower sites in Uganda.
“We are pleased to announce the launch of our operations in Uganda, again in partnership with MTN, Africa’s largest mobile operator,” said Jim Taiclet, Chairman, President and Chief Executive Officer of American Tower.