Liberty Latin America (LLA) followed the publication of its third-quarter results yesterday with the announcement of reaching an agreement with Phoenix Tower International (PTI) to monetise approximately 1,300 mobile tower sites across six markets in the Caribbean and Panama. The transaction also includes arrangements to extend coverage, with an additional 500 sites to be built by both companies over the next five years.
LLA is reported to monetise tower sites across Panama, Jamaica, The Bahamas, Puerto Rico, Barbados, and the British Virgin Islands. Taking these commitments into account, the total proceeds now amount to USD 407 million and are expected to be used to reduce debt and further invest in the company’s businesses, said LLA.
Liberty Latin America commented, “We are pleased to work with a high-quality partner with extensive operating experience in our region in PTI and reach an agreement that crystallises the value of our mobile tower infrastructure assets. In addition, the long-term lease agreements and ongoing coverage extension will enable us to continue delivering leading mobile services to our customers and support network expansion, including future 5G deployment plans across the Caribbean and Latin America, while lowering capital costs associated with these assets.”
“This transaction strengthens PTI’s presence in existing markets while representing new market expansion for PTI in the markets of The Bahamas, BVI, and Barbados,” said Phoenix Tower International.
According to the joint statement, the terms of the transaction include long-term Master Lease Agreements for each market for LLA’s continued use of the telecommunications tower infrastructure following the completion of the transaction, which is expected to occur within three to six months, subject to customary conditions and certain government approvals.