Luxembourg-headquartered Millicom, the owner of Tigo-branded telecom services across Latin America, has announced that its subsidiary, Tigo Colombia, has agreed to sell approximately 1,100 wireless communications towers to the Global Infrastructure Investors IV fund of the US investment firm KKR. KKR plans to work in partnership with NEXO LatAm, a digital infrastructure platform that will aid in implementing KKR's infrastructure strategy throughout Latin America.
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Long-term Lease Arrangement
As part of the transaction, Tigo Colombia and KKR have entered into a long-term agreement whereby KKR will lease wireless communications towers to Tigo Colombia to support its wireless networks. According to Tigo, the exact number of towers will be determined post-closing, subject to customary closing conditions.
Millicom said, "This transaction with KKR is another step towards crystallising the value of our tower sites across Latin America, simplifying our business, and allowing us to focus on servicing our customers. This transaction enhances our operational and capital efficiency in Colombia, with long-term lease obligations denominated in Colombian pesos, consistent with our objective of increasing our proportion of financing in local currency."
Strategic Focus and Benefits
KKR’s Infrastructure team commented, "KKR seeks to develop the telecommunications industry in Latin America through best-in-class mission-critical assets such as fibre, towers, and small cells. This acquisition, along with KKR's fibre investments in Chile, Colombia, and Peru, underscores KKR's commitment to its digital infrastructure platform in LatAm. This important agreement with Tigo is in line with our strategy of long-term partnerships with leading companies in the region."
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Millicom - Tigo
Millicom is a provider of fixed and mobile telecommunications services in Latin America under the Tigo brand. As of September 30, 2023, Millicom provided mobile and fibre-cable services to over 45 million customers, with a fibre-cable footprint of over 13 million homes-passed.
