Delta Partners advises Millicom on a US$125 million tower deal with American Tower in Paraguay

Delta Partners Corporate Finance Limited, a member of the Delta Partners Group of companies, acted as the sole strategic and financial advisor to Millicom International and its subsidiary Telefonica Celular del Paraguay S.A. (“Tigo Paraguay”) on the sale and lease-back of circa 1,400 wireless communications towers to American Tower Corporation (“ATC”) in Paraguay. As a result of the transaction, Tigo Paraguay will receive approximately Gs700 billion, equivalent to US$125 million, in cash.  

ATC, in this long term local currency leasing agreement, will provide Tigo Paraguay with wireless communications towers to support Tigo Paraguay’s wireless networks and rollout plans. The transaction is expected to create overall savings for Tigo Paraguay.

The sale process kicked off in Q4 2016 with Delta Partners organising and carrying out a competitive process while contacting the largest TowerCo’s that had previously signalled interest in the portfolio. The entire process from the commencement till signing of the binding agreements lasted approximately six months which included various rounds of bids and a process fully managed by Delta Partners.

Commenting on Delta Partners’ role in the transaction Kamal Daswani, Director, Delta Partners, said: “The agreement, supported by immense team effort, has culminated in a satisfactory result for all parties. We are very pleased to have been able to support Millicom International and Tigo Paraguay and act as the sole facilitator in the sale and lease-back of the largest and finest portfolio of towers available in Paraguay, which is one of the more attractive economies in South America.”

Xavier Rocoplan, Chief Technology and IT Officer, commented: “Delta Partners was instrumental in facilitating this agreement, which is consistent with our strategic goal of a two-fold reconfiguration of our business, rapidly growing our mobile data and cable revenue in Latin America, and pushing ahead with major initiatives to enhance our operational and capital efficiency. We are also pleased that Tigo Paraguay will be able to rely on the strong operational credentials of American Tower, the largest tower operator in Latin America.”