Millicom has announced it will sell approximately 7,000 towers in Guatemala, Honduras, Panama, El Salvador and Nicaragua to SBA Communications for a total consideration of approximately US$975mn, plus an earn-out contingent on achieving certain financial performance metrics.
In addition to offloading assets through the sale and leaseback transaction to SBA Communications, Millicom and the towerco have also entered into a build-to-suit agreement (BTS) under which SBA Communications will build up to 2,500 sites.
The sale brings to an end speculation over the development of Millicom’s own towerco Lati, with Millicom now disposing of its remaining tower assets in all its remaining markets aside from Bolivia and Paraguay.
SBA Communications - estimated site count in the Americas
“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.” Marcelo Benitez, Chief Executive Officer of Millicom, commented on the partnership.
SBA Communications manages 39,000 sites in 15 markets the Americas, Africa and Asia and adding Millicom’s towers to its portfolio significantly strengthens its positions in the Americas. The transaction is pending regulatory approvals and other closing conditions and is expected to close in mid-2025.
Further TowerXchange reporting and analysis will follow
