Millicom's Colombian Subsidiary Signs Agreement to Sell and Lease Back Towers to American Tower
LUXEMBOURG, July 18, 2017 /PRNewswire/ --Millicom International Cellular S.A. ("Millicom") announced today that its subsidiary Colombia Móvil S.A. E.S.P ("Tigo") has agreed to sell approximately 1,200 wireless communications towers to a subsidiary of American Tower Corporation ("ATC") in Colombia. As a result of the transaction, Tigo will receive approximately 448 billion COP, equivalent to US$147 million, in cash.
As part of the transaction, Tigo and ATC have entered into a long-term agreement in local currency whereby ATC will lease to Tigo wireless communications towers to support its wireless networks. The specific number of towers and final purchase price will be determined once the various closings have taken place, which are subject to customary closing conditions and regulatory approval.
Mauricio Ramos, CEO of Millicom, said: "Colombia is our biggest operation in Latin America, where we have a strong focus on remaining competitive by bringing advanced infrastructure and services to our customers. Similar to the Paraguay transaction that we announced in April, this new agreement with American Tower Corporation enhances our operational and capital efficiency, while also allowing us to invest in improving the connectivity experience for our customers. The lease obligation is denominated in Colombian pesos, consistent with our objective of increasing our proportion of financing in local currency."
For further information, please contact
Press:
Vivian Kobeh
Corporate Communications Director
Tel: +1-305-476-7352 / +1-305-302-2858
press@millicom.com
Investors:
Michel Morin
VP Investor Relations
+352-277-59094
investors@millicom.com
Mauricio Pinzon
Investor Relations Manager
Tel: +44-20-3249-2460
investors@millicom.com
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