SBA Communications deepened its tower holdings in Brazil, announcing today that it has entered into an agreement to purchase 2,007 wireless sites from that country’s largest telecommunications provider Oi for $645 million.
SBA noted that at the close of the deal, Oi will enter into a “long-term lease” with SBA, including monthly lease payments for antennas on each site. Those sites currently house an average of 1.6 antennas per site and include leases from various Brazilian operators.
The deal builds on one that recently closed between the two parties that included 2,113 towers for more than $300 million. Those sites had approximately 1.15 antennas per site, which accounted somewhat for the lower price per site.SBA announced late last year that it had purchased 800 sites in Brazil from an undisclosed mobile broadband provider for approximately $174 million.
SBA said it expects to pay for the latest transaction with cash on hand, tapping into its existing revolver capacity and potentially the issuance of future debt. The deal is expected to close early next year. SBA’s stock (SBAC) was trading down slightly early Wednesday at $85.27 per share.
“We are very pleased to acquire these high quality assets and expand our relationship with Oi,” said SBA President and CEO Jeffrey Stoops in a statement. “These are very good sites, concentrated in the most populous areas of Brazil, with demonstrated attractiveness to tenants. With this acquisition, we will have established SBA as one of the largest and most capable independent tower operators in Brazil,
a market which we believe is very attractive and will produce strong growth in the future.”
The acquisition also further bolsters SBA’s position against domestic rival American Tower, which has a substantial presence in Brazil. At the recent PCIA 2013 event, executives from both American Tower and SBA touted the need for continued overseas expansion as a means to drive growth.
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