American Tower Corporation (ATC) and Caisse de depot et placement du Quebec (CDPQ) have announced that the latter will acquire a 30% stake in ATC Europe as part of a new long-term strategic partnership. The transaction is valued at over EUR1.6 billion (USD1.9 billion), implying an enterprise value of more than EUR8.8 billion for ATC Europe. Pursuant to the partnership agreement, ATC will retain managerial and operational control, as well as day-to-day oversight of ATC Europe, while CDPQ will obtain seats on ATC Europe’s Board of Directors, along with certain governance rights. The transaction is expected to close in the third quarter of 2021, subject to customary closing conditions, including regulatory approvals.
In a parallel development, ATC has announced that – in connection with the funding of its transaction with Telxius Telecom (see below) – it intends to offer 8.5 million shares of its common stock in a registered public offering, subject to market and other conditions. ATC intends to grant the underwriters the option to purchase up to an additional 850,000 shares common stock to cover over-allotments, if any. This offering is not contingent upon consummation of the Telxius transaction.
In January this year Telefonica announced that Telxius Telecom, the company it co-owns with KKR and Pontegadea, had signed a EUR7.7 billion agreement with ATC for the sale of its tower divisions in Europe (Spain and Germany) and Latin America (Brazil, Peru, Chile and Argentina). The agreement encompasses approximately 30,722 tower sites and comprises two separate and independent transactions: one involving Telefonica’s European business and one involving its Latin American business.