Two Mexican Tower Operators Announce Merger
Published on: 22nd May 2014
The Macquarie Mexican Infrastructure Fund (MMIF) says that it has merged its towers assets in Mexico with Digital Bridge to form the second largest independent tower business in the country.
Based in Mexico City, the merged company, Mexico Tower Partners (MTP) manages more than 550 towers. MTP is an equal 50/50 joint venture between Macquarie Mexican Infrastructure Fund ("MMIF") and Digital Bridge.
"The combination of our existing portfolios creates greater scale and enables us to further penetrate the market and to diversify our customer base" said Jonathan Davis Arzac, Chairman, MMIF. "Digital Bridge management is comprised of experienced industry veterans who will manage our combined portfolios and seek further opportunities to expand our operations in Mexico. We look forward to working with them."
MMIF's tower business was formed in October 2011 when MMIF and Global Tower Partners (GTP) acquired a portfolio of 199 towers in Mexico from Telefonica. GTP was sold to American Tower in September 2013. GTP's Mexican towers were carved out of that transaction.
"We believe that the wireless tower industry in Mexico presents attractive opportunities for investors given the low levels of current coverage, increasing demand driven by the popularity of smart phones and other data-intensive wireless devices and current plans of local carriers to continue to deploy newer wireless technologies. Further, Mexico's telecommunication reforms are expected to result in more opportunities and a more competitive environment for new entrants. We are confident that MTP is well placed to capitalize on these trends," added Davis Arzac.