MTN Uganda enters tower deal with American Tower

American Tower and South Africa’s MTN Group have established a joint venture tower company in Uganda, which will acquire all of the existing tower sites from MTN Uganda, numbering approximately 1,000, for an agreed purchase price of up to US$175 million.

The towers will be managed by a holding company (ATC Uganda) in which American Tower will hold a 51 per cent stake and MTN Group 49 per cent. American Tower will pay approximately US$89 million for its stake in the new holding company. MTN Uganda will remain the anchor tenant on the towers, on commercial terms.

American Tower also expects that ATC Uganda will build approximately 280 tower sites for MTN Uganda over the next three years, as well as pursue opportunities to build tower sites for other wireless operators in Uganda.

Upon the close of the transaction, ATC Uganda will be the largest owner and operator of sites in Uganda.