TowerXchange Meet Up Americas 2017
At the TowerXchange Meetup Americas in Boca Raton yesterday the question of consolidation was presented to the panel. Panelists taking part in “Today’s Financial Challenge under a Lens” unanimously agreed that although consolidation is inevitable, it will require precise timing. But for Macquarie’s Peter Bendall, the key word is “patience,” coming from investors.
The panel consisted of:
- Moderator: Marco Cordoni, Senior Partner, Analysys Mason
- Sachit Ahuja, VP Business Development, Tillman Global Holdings
- Ariana Batori, Investment Officer, IFC
- Peter Bendall, Senior Vice President, Macquarie Infrastructure and Real Assets (MIRA)
- Nick Del Deo, Analyst, MoffettNathanson
- Beth Michelson, Senior Managing Director, Cartesian Capital
There was agreement that the sector remains attractive across central and South America broadly, but each county has different challenges and variables. Among those are the currency base of a country (U.S. dollar or local currency), political situations and competition like AT&T’s low priced entry into Mexico. Also, as Beth Michelson, Senior Managing Director, Cartesian Capital stated, there is no portfolio effect as there is in the U.S., where a tower company can sell a basket of towers: some excellent, some good, and some not so fine. In this region, every tower is evaluated on its own and must pass muster or the pricing of the deal will be adversely impacted.
The market for consolidation is beginning to mature, the panel agreed, but there have been relatively few transactions and little clarity or case law to establish footing from which to move forward.
The TowerXchange ends today and the next event is the TowerXchange Meetup Africa and Middle East in October in Johannesburg. Visit https://www.towerxchange.com for more information.
Below are some photos from Roundtable 4.
June 8, 2017
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