American Tower Corporation (ATC) and Caisse de dépôt et placement du Québec (CDPQ), a global investment group, announced that the latter will acquire a 30% stake in ATC Europe.
ATC said that the transaction is valued at over 1.6 billion euros ($1.92 billion), implying an enterprise value of more than 8.8 billion euros for ATC Europe. Under the terms of the deal, American Tower will retain managerial and operational control, as well as day-to-day oversight of ATC Europe, while CDPQ will obtain seats on ATC Europe’s Board of Directors, along with certain governance rights.
American Tower Corporation also announced that it intends to offer 9,000,000 shares of its common stock in a registered public offering. American Tower said it expects to use the net proceeds from this offering, together with cash on hand and borrowings under its revolving credit facilities and term loans, to finance its purchase of Telxius.
ATC Europe’s portfolio will consist of nearly 30,000 communications sites once ATC closes the pending acquisition of Telxius.
Tom Bartlett, American Tower’s President and CEO, said: “We are pleased to partner with CDPQ in Europe, where we expect to create tremendous value. CDPQ’s extensive infrastructure experience, deep knowledge of the region and long-term investment philosophy are in close alignment with American Tower’s European strategy, operational excellence and long track record of historical success. This transaction not only contributes to the funding of our pending Telxius acquisition, which will transform our scale and leadership position in highly attractive markets like Germany and Spain, but also creates a solid, adaptable framework through which future expansion opportunities can be evaluated and financed.”
“Through this new long-term strategic partnership with American Tower, CDPQ is thrilled to play an active role in establishing one of Europe’s largest independent communications infrastructure providers. This dedicated growth platform with a global leader enables us to increase our exposure in key European markets — including Germany, France and Spain — while contributing to the development of critical carrier-neutral telecom networks, at a time where telecommunications needs are more important than ever,” said Emmanuel Jaclot, CDPQ’s EVP and head of infrastructure.
ATC noted that the transaction is expected to close in the third quarter of 2021, subject to customary closing conditions, including regulatory approvals.
American Tower ended the first quarter of 2021 with a portfolio of approximately 187,000 communications sites.
In January, Spanish telecom operator Telefónica’s subsidiary Telxius Telecom had signed an agreement with American Tower Corporation for the sale of its telecommunications towers businesses in Europe and Latin America.
The agreement involves 30,722 telecommunication tower sites and covers two separate and independent transactions: One for the European division and another for the business in Latin America. Telxius has telecommunications towers in Spain, Germany, Brazil, Peru, Chile and Argentina.
The company reported overall revenues of $2.16 billion for the first quarter of 2021, surging 8.3% year-on-year. American Tower’s profits for the period amounted to $652 million, up 55.8% compared to the first quarter of 2020.
