Delta Partners advises Millicom’s Tigo El Salvador on a US$145 million tower deal with SBA

Delta Partners advises Millicom’s Tigo El Salvador on a US$145 million tower deal with SBA

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Delta Partners Corporate Finance Limited, a member of the Delta Partners Group of companies, acted as the sole strategic and financial advisor to Millicom’s Tigo El Salvador, a subsidiary of Millicom International Cellular S.A (“Millicom”) on the sale and lease back of up to approximately 800 wireless communications towers to a subsidiary of SBA Communications Corporation (“SBA”) in El Salvador. As a result of the transaction, Tigo El Salvador will receive approximately US$145 million in cash.

The two companies have also entered into a longer term agreement, which will see SBA provide Tigo El Salvador with wireless communications towers to support the company’s wireless networks and roll out plans. The transaction is expected to create a number of savings in terms of both capital and operating expenditures for Tigo El Salvador.

The sale process took place in Q4 2017 with Delta Partners organising and carrying out a competitive process. The entire process from the commencement until signing of the binding agreements lasted approximately 5 months, with Delta Partners fully managing the process throughout.

Commenting on Delta Partners’ role in the transaction, Kamal Daswani, Director at Delta Partners, said: “We’re pleased to have facilitated a satisfactory agreement for all parties. This new agreement is testament to the effort of the whole team, who have a significant level of specialized experience in the passive infrastructure space advising on transactions of this scale. We look forward to seeing how this deal will further help Millicom’s development plans and focus on Latin America in the future.”

Bart Vanhaeren, VP, Business Development and M&A at Millicom commented: “With this deal we further strengthen our business relationship with SBA and continue operating with the best level of service in the country while we manage to optimize our capital structure and OPEX. Delta Partners has been instrumental in facilitating this competitive process from deal preparation stage with the El Salvador team up to final signing.”

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.

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