Reportedly, leading international wireless tower operator American Tower Corporation AMT is considering the purchase of Saudi Arabian telecommunications company – Mobily's – cell tower assets.
In the previous month, Mobily had reached out to international tower operators and private equity companies for the sale of its towers, clearly hinting at the fact that the company is seeking an opportunity to vend its assets.
According to a report by The Wall Street Journal, Mobily possesses 10,000 towers in Saudi Arabia. Also, the company is looking to gain $1.5–$2 billion from the sale of its tower assets. Notably, IHS Nigeria is also interested in buying Mobily’s towers.
Meanwhile, American Tower is certain about acquiring more than 100,000 towers by the end of 2015, through organic or inorganic means.
On Mar 30, 2015, American Tower had announced the closing of the deal pertaining to leasing rights of approximately 11,324 wireless towers and acquisition of 165 additional towers from Verizon Communications Inc. This deal will provide American Tower with the exclusive right to operate the leased towers for an average term of around 28 years, with an option to buy them as well. The deal, valued at $5.06 billion, was announced in Feb 2015.
Also, as per the latest market buzz, American Tower is mulling over the acquisition of nearly 9,000 towers of Africa’s largest wireless carrier, MTN Group Ltd. The value of the deal may be anything between $1.5 billion and $2 billion. However, the deal is not expected to close before end-2015.
American Tower currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks in this sector include iStar Financial Inc. STAR, MFA Financial, Inc. MFA and Walter Investment Management Corp. WAC. All these stocks sport a Zacks Rank #1 (Strong Buy).
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