KPN Raises $500 Million From Sale of 2,000 German Towers to American Tower
Published on: 14th Nov 2012
Note -- this news article is more than a year old.
By: Ian Mansfield
KPN has secured a deal to sell over 2 000 of its German subsidiary's towers to USA based American Tower Corp for an agreed upon purchase price of approximately EUR 393 million (USD500 million).
The purchase price is at the upper end of previous estimates, which had expected the company to raise in the region of EUR300-EUR400 million.
As part of this transaction, E-Plus and American Tower 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.
KPN said that it will use the cash proceeds of this transaction to continue to invest in the accelerated mobile network roll-out in Germany and to improve its net debt position.
The transaction is expected to close in the fourth quarter of 2012, subject to customary closing conditions.
Earlier this month, KPN sold an unspecified number of its Dutch towers to Protelindo, an Indonesia based owner and operator of towers for wireless communications for EUR75 million.