American Tower Corporation (ATC) agreed to form a joint venture with South Africa's MTN Group that will create the single largest owner and operator of broadcast and wireless tower sites in Uganda. The deal calls for American Tower to pay about USD 89 million for a 51 percent stake in the venture, dubbed ATC Uganda. MTN Group will hold a 49 percent stake in the venture. American Tower will manage ATC Uganda, which will acquire 1,000 tower sites from MTN Uganda for up to USD 175 million. ATC Uganda will build roughly 280 tower sites for MTN Uganda over the next three years. MTN Uganda will be the anchor tenant, on commercial terms, on each of the towers being purchased. The venture will also pursue opportunities to build tower sites for other wireless operators in Uganda. The transaction is expected to close in the first half of 2012, subject to customary closing conditions.
