TIM Brasil has approved the sale of its mobile towers for about BRL 3 billion (USD 1.2 billion) to American Tower. The first part of the transaction includes 5,240 towers. Another 1,240 towers are subject to pre-emptive acquisition rights by the mobile operators Claro, Embratel and Americel as part of sharing agreements with TIM. If they do not exercise these rights, then America Tower will acquire these towers as well. After the sale TIM will lease back space on the towers for 20 years.
American Tower anticipates the towers will generate BRL 435 million in annual revenues and BRL 191 million in annual gross profit. The companies expect the transaction to close in the first half of 2015, pending regulatory approval and expiration of the preemptive rights.
