American Tower Corporation has announced that it has reached an agreement with TIM Participacoes (TIM Brasil) to acquire two portfolios of towers in Brazil. The first portfolio includes approximately 5,240 towers, while the second portfolio includes approximately 1,240 towers; the second batch of assets are subject to certain pre-emptive acquisition rights held by third parties. The total consideration is expected to be around BRL3.0 billion (USD1.2 billion).
American Tower anticipates that the towers will generate approximately BRL435 million in annual run rate revenues. TIM will be the anchor tenant on each portfolio under leases with 20-year initial terms. The transactions are expected to conclude in the first half of 2015, subject to customary closing conditions, regulatory approval and – for the second portfolio – the expiration of the third parties’ pre-emptive rights.