Luxembourg – Millicom (NASDAQ: TIGO) announces today that its subsidiary Tigo Colombia has agreed to sell approximately 1,100 wireless communications towers to affiliates of investment funds managed by KKR, a leading global investment firm. KKR plans to work in partnership with NEXO LatAm, a digital infrastructure platform that supports the implementation of KKR’s infrastructure strategy throughout Latin America.
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. The exact number of towers will be determined once the various closings have taken place, which are subject to customary closing conditions.
Mauricio Ramos, CEO and Chairman of the Board of Millicom, said: “This transaction with KKR, a leading digital infrastructure franchise with deep sector expertise and commitment to the region, is another step towards crystallizing 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.”
Waldemar Szlezak, a partner on KKR’s Infrastructure team, said: “KKR seeks to develop the telecommunications industry in Latin America through best-in-class mission-critical assets such as fiber, towers and small cells. This acquisition – along with KKR’s fiber 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.”
KKR is making the investment through its KKR Global Infrastructure Investors IV fund.