UPDATE Millicom’s (NASDAQ: TIGO) mobile network operator subsidiary, Tigo Colombia, has agreed to sell roughly 1,100 wireless communications towers to affiliates of investment funds managed by global investment firm KKR (NYSE: KKR). KKR plans to work in partnership with NEXO LatAm, a digital infrastructure platform that supports the implementation of KKR’s infrastructure strategy throughout Latin America.
As part of the transaction, Tigo Colombia and KKR have entered into a long-term sale and leaseback agreement whereby KKR will lease towers to Tigo Colombia to support Tigo’s wireless networks. The number of towers involved will be determined once the various closings have taken place, which are subject to customary closing conditions.
“This transaction with KKR is another step towards crystallizing the value of our tower sites across Latin America, simplifying our business, and allowing us to focus on servicing our customers,” comments Mauricio Ramos, Millicom CEO and Chairman of the Board. “[It] enhances our operational and capital efficiency in Colombia, with long-term lease obligations denominated in Colombian pesos, consistent with our objective of increasing our proportion of financing in local currency.”
Waldemar Szlezak, a partner on KKR’s Infrastructure team says, “This acquisition – along with KKR’s fiber investments in Chile, Colombia, and Peru – underscores KKR’s commitment to its digital infrastructure platform in LatAm. This important agreement with Tigo is in line with our strategy of long-term partnerships with leading companies in the region.”
KKR is making the investment through its KKR Global Infrastructure Investors IV fund.
By John Celentano, Inside Towers Business Editor
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