American Tower has agreed to buy over 2000 KPN tower sites in Germany for EUR 393 million after inking a deal with KPN's E-Plus unit. The transaction is expected to close in the fourth quarter of this year, subject to customary closing conditions.
KPN said it expects to make a book profit of around EUR 100 million from the sale of 2000 masts in Germany to American Tower for EUR 393 million. The Dutch operator will use the cash proceeds to accelerate its mobile network roll-out in Germany and to improve its net debt position. The outlook for 2012 remains unchanged following the transaction.
American Tower CEO Jim Taiclet said that as a consequence of the deal, it has launched operations in Germany. "With over one hundred million subscribers and its significant growth in wireless data demand, Germany represents the largest wireless market in Europe and an attractive complement to our overall international portfolio mix and expansion strategy. We believe these sites represent a compelling investment for American Tower with strong day one cash flows and an opportunity to drive future collocation in a stable, growing wireless market," Taiclet said.
Located throughout Germany, the mobile towers are used by both E-Plus and other mobile network operators to house network equipment. As part of this transaction, E-Plus and American Tower Corporation have entered into a long-term master lease agreement under which E-Plus leases back space on the mobile towers which it requires for its own network equipment. Currently, E-Plus already leases space on a large number of mobile towers in Germany.
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