Johannesburg - Cell C on Friday said it has made an agreement to sell off 1 400 of its towers to American Tower Corporation for about $430m.
The deal includes up to 1 800 additional towers that are either under construction or will be constructed over the next two years.
The firm said Cell C will be the anchor tenant on each of the towers being purchased by American Tower, and that it expects to close the sale of the existing towers by early 2011, subject to customary closing conditions.
“We are pleased to announce the launch of our operations in South Africa, as well as the opportunity to work with Cell C,” said Jim Taiclet, chairperson, president and CEO of American Tower.
“We believe South Africa provides a compelling investment opportunity for us, with strong demand for voice and advanced wireless data services. In addition, our newly established presence in South Africa will provide us with a platform for our future growth in the region.”
Cell C CEO Lars Reichelt said: "This is an important strategic transaction for Cell C, allowing us to realise the value embedded in our passive infrastructure, which has undergone a significant transformation over the past few years. We believe our relationship with American Tower will enable us to further enhance the quality and coverage of our network."
American Tower is an owner, operator and developer of broadcast and wireless communications sites. It owns and operates about 33 000 communications sites in the US, Brazil, Chile, Colombia, India, Mexico and Peru.