MTN
MTN
MTN - MTN Group Limited - Announcement of a joint Tower Company with
American Tower Corporation in Uganda
MTN Group Limited
(Incorporated in the Republic of South Africa)
Registration number 1994/009584/06
Share code: MTN
ISIN code: ZAE000042164
("MTN" or "the Group")
ANNOUNCEMENT OF A JOINT TOWER COMPANY WITH AMERICAN TOWER CORPORATION IN
UGANDA
MTN and American Tower Corporation ("ATC") have today announced that they
have entered into an agreement for the establishment of a joint initiative
in Uganda ("TowerCo Uganda"). This transaction follows MTN`s announcement
on 6th December 2010, relating to the establishment of the joint venture
agreement with ATC in Ghana and its strategy to pursue more extensive
passive infrastructure sharing in its key markets. TowerCo Uganda, managed
by ATC, will be majority owned by a holding company of which a wholly-owned
ATC subsidiary will hold a 51% share and a wholly-owned MTN Group
subsidiary a 49% share. ATC is a leading owner, operator and developer of
wireless and broadcast communications sites and currently owns and operates
approximately 40,000 communications sites in the United States, Brazil,
Chile, Colombia, Ghana, India, Mexico, Peru, and South Africa. The
transaction involves the sale of approximately 1,000 of MTN Uganda`s
existing sites to TowerCo Uganda for an agreed purchase price of $175
million. This requires ATC to pay up to approximately $89 million for its
51% stake in the holding company.
MTN Uganda will be the anchor tenant, on commercial terms, on each of the
towers being purchased. In addition, TowerCo Uganda is expected to build at
least 280 more sites for MTN Uganda over the next three years and pursue
opportunities to build tower sites for other wireless operators in Uganda.
MTN Group, ATC and MTN Uganda expect to close the transaction during the
first half of 2012, subject to customary closing conditions.
MTN continues to view infrastructure sharing as one of its key strategies
in driving operational efficiencies in its operations across Africa and the
Middle East and will continue to pursue appropriate initiatives in that
regard.
Fairland
9 December 2011
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
Financial Adviser Legal Adviser
Citigroup Global Markets Limited Freshfields Bruckhaus Deringer LLP
Date: 09/12/2011 07:30:01 Produced by the JSE SENS Department.
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