The sale-and-leaseback deal was agreed for an undisclosed sum
This week, Millicom’s subsidiary Tigo Colombia has agreed to sell around 1,100 of its mobile towers to US investment firm KKR.
The towers will be managed by KKR in partnership with NEXO LatAm, the digital infrastructure platform that manages KKR’s fibre investments throughout Latin America.
Tigo itself will continue to make use of the divested towers for its mobile network via a long-term leasing agreement with KKR.
The financial details of the deal were not revealed.
“This transaction enhances our operational and capital efficiency in Colombia, with long-term lease obligations denominated in Colombian pesos, consistent with our objective of increasing our proportion of financing in local currency,” said Millicom’s CEO Mauricio Ramos.
KKR already owns significant infrastructure assets in Latin America, primarily in partnership with Spanish telecoms giant Telefonica, with whom it jointly owns fibre networks in Colombia, Brazil, Peru, and Chile.
“KKR seeks to develop the telecommunications industry in Latin America through best-in-class mission-critical assets such as fiber, towers and small cells. This acquisition – along with KKR’s fiber investments in Chile, Colombia and Peru – underscores KKR’s commitment to its digital infrastructure platform in LatAm. This important agreement with Tigo is in line with our strategy of long-term partnerships with leading companies in the region,” said Waldemar Szlezak, a partner on KKR’s Infrastructure team.
In fact, KKR’s interest in telecoms infrastructure extends far beyond Latin America. The company is currently in the process of purchasing Italian incumbent operator TIM’s spun-off fixed network assets for roughly €22 billion. The deal, which had been in discussion for over a year, finally received approval from the Italian government earlier this month.
The deal is subject to typical regulatory approvals.
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