Terra Towers Corporation filed a lawsuit against American Tower International in a Miami-Dade court on Tuesday, accusing them of breaching a $1 billion acquisition and development deal across numerous Latin American markets, collectively known as Project Codu.
Terra and Terra TBS own the majority of shares in Continental Towers, which owns and operates cell phone towers primarily in Central America, Peru and Colombia. Beginning late in 2017 and throughout 2018, Terra and American Tower negotiated the proposed acquisition of the towers owned by Continental Towers and DTH, an affiliate of Terra.
The lawsuit claims that American Tower breached an agreement to purchase shares in Continental Towers LATAM Holdings, Ltd. from the plaintiffs for $466 million dollars late in 2018. Also included in the proposed deal was a portfolio of 94 towers owned by Telefonica in Guatemala, which DTH had purchased with money forwarded by American Tower.
In 2016, DTH and American Tower commenced negotiations to establish a joint venture in the telecom tower business in Peru through a Site-Development Agreement and a Master Usufruct Agreement. The agreement to develop 958 towers in Latin America with DTH was breached by American Tower also in 2018, according to the complaint.
In addition to the breached contracts, which total around $800 million, the plaintiffs are asking for damages in excess of $750,000, exclusive of costs, interest and reasonable attorney’s fees.
Inside Towers contacted American Tower concerning the lawsuit and the company responded that it does not comment on ongoing legal proceedings but will fully defend its interests.
By J. Sharpe Smith, Inside Towers Technology Editor
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