LUXEMBOURG, April 26, 2017 /PRNewswire/ --
Millicom International Cellular S.A. ("Millicom") announced today that its subsidiary Telefonica Celular del Paraguay S.A. ("Tigo Paraguay") has agreed to sell approximately 1,400 wireless communications towers to a subsidiary of American Tower Corporation ("ATC") in Paraguay. As a result of the transaction, Tigo Paraguay will receive approximately Gs700 billion, equivalent to US$125 million, in cash.
Additionally, Tigo Paraguay and ATC have entered into a long term local currency leasing agreement whereby ATC will provide Tigo Paraguay with wireless communications towers to support Tigo Paraguay's wireless networks and rollout plans. The transaction is expected to create savings in both capital and operating expenditures for Tigo Paraguay. 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.
Mauricio Ramos, CEO of Millicom, said: "This agreement is consistent with our strategic goal of a two-fold reconfiguration of our business, rapidly growing our mobile data and cable revenue in Latin America, and pushing ahead with major initiatives to enhance our operational and capital efficiency. We are pleased that Tigo Paraguay will be able to rely on the strong operational credentials of American Tower, the largest tower operator in Latin America."
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Millicom signs agreement to sell and lease back towers to American Tower in Paraguay
SOURCE Millicom International Cellular