Telxius has reached an agreement with Telefónica Brasil (Vivo) for the acquisition of 1,909 sites in that country. With this agreement, Telxius will double its current portfolio, reaching 3,850 owned sites and confirming its position as one of the main neutral infrastructure operators in Brazil.
The agreement is subject to antitrust approval. It amounts to a total value of R$ 641 million (U.S. $152M), to be financed from the company’s own cash flow, similar to prior acquisitions in 2019.
The acquired portfolio has a fundamentally urban profile, 82 percent of the total, with 52 percent of the acquired towers located in Brazil’s main cities, São Paulo and Rio de Janeiro. These locations, coupled with its current tenancy ratio of 1.10-tenants-per-tower, result in high growth potential for these new sites, according to the company.
This acquisition will allow Telxius to strengthen its presence in Brazil’s urban areas, where mobile operators will presumably concentrate their efforts for the improvement of mobile broadband coverage and 5G deployment.
Since its creation in 2016, Telxius Torres Brazil has experienced growth, thanks to its relationship with the main telecommunications operators and its operational capabilities. During 2019, close to 50 percent of the new towers built-to-suit by Telxius in Brazil have been commissioned by operators other than the Telefónica Group.
December 3, 2019
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