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American Tower Corporation
AMT and MTN Group
Limited today announced that they have entered into a
definitive agreement to establish a new joint venture tower company in Uganda
, 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.
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