Crown Castle owns Down Under footprint of 1,800 towers
Cellular infrastructure giant Crown Castle is considering a sale of its Australian tower assets, which comprise some 1,800 towers that support carriers Optus, Telstra and Vodafone Hutchison Australia.
The company announced that it is exploring a sale “in light of recent unsolicited offers,” according to Crown Castle President and CEO Ben Moreland.
“We have determined that fully exploring the options available to us will ensure the best long-term results for our shareholders,” Moreland stated. “Similar to our U.S. business, [the Australian subsidiary] has developed into a leading wireless infrastructure provider in the attractive Australian market with a unique portfolio of assets and platform for future growth and expansion.”
Crown Castle’s Australian operation is the largest independent tower owner in the country. Crown Castle owns 77.6% of the subsidiary, which owes the parent company $306 million in loan financing. The Australian tower company is projected to contribute up to 5% of Crown Castle’s estimated 2015 earnings of $2.15 billion, before interest, taxes, depreciation and amortization.
A company announcement indicated that a sale exploration will actually result in a deal to sell tower assets.
“Crown Castle does not intend to discuss developments with respect to the exploration of a sale unless or until its board of directors reviews and approves a specific action or otherwise deems further disclosure is appropriate or required,” the company noted.
In November, Crown Castle shareholders announced the company was moving forward with a merger of the tower portion of the business with its real estate investment trust, Crown Castle REIT.
The decision to merge the entire company into the REIT is an indication that Crown Castle is content to invest primarily in the U.S. market going forward. Moreland has said repeatedly that he believes the U.S. offers the best risk-adjusted returns.
Crown Castle owns some 40,000 towers in the United States, as well as lease rights to 9,700 towers picked up from AT&T in late 2013 for $4.85 billion.
