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American Tower Closes on Purchase of Cell C's South African Tower Portfolio
American Tower Corporation announced today the first closing of the previously announced transaction in South Africa with Paul, Weiss client Cell C (Pty) Ltd. In this closing, American Tower, through its local South African subsidiary, acquired approximately 960 existing towers from Cell C, for an aggregate purchase price of approximately $140 million, using cash on hand, local financing, and funds contributed by South African investors who currently hold an approximate 25% minority stake in the subsidiary. American Tower expects to acquire from Cell C approximately 440 additional existing towers during 2011 for an aggregate purchase price of approximately $60 million. Pursuant to the transaction, American Tower may acquire up to 1,800 additional communications towers that are either under construction or will be constructed, for an aggregate purchase price of up to approximately $230 million.
This precedent setting transaction is the first large sale-leaseback of communications towers to be announced in the country of South Africa. Cell C, South Africa's third cellular operator with more than seven million subscribers, will be an anchor tenant on each of the towers purchased. Cell C's new relationship with American Tower will enable it to further enhance the quality and coverage of its cellular network.
The Paul, Weiss team representing Cell C includes corporate partner Bruce A. Gutenplan and real estate partner Mitchell L. Berg. London-based securities partner Mark S. Bergman and tax partner Peter J. Rothenberg provided assistance on the deal.