Tigo Sells Communication Towers for $975 Million in Panama and Central America

Millicom International Cellular (known commercially as Tigo) announced this Monday, October 28, an agreement with SBA Communications Corporation (SBAC) to sell and lease approximately 7,000 towers in Guatemala, Honduras, Panama, El Salvador and Nicaragua, for a total amount of $975 million.

In a corporate statement, Marcelo Benítez, Millicom’s chief executive, was quoted as saying that the transaction is a key element in the strategy to generate value for shareholders.

“By monetizing non-core assets, we optimize our operational and capital efficiency, positioning the company for sustainable growth and long-term value creation. This agreement with SBA Communications strengthens our position as a leading mobile network operator in the region (…),” said the executive.

Brendan Cavanagh, President and CEO of SBA Communications, said: “As a result of this transaction, we will be the leading tower company in all of Central America. We are excited to support Millicom as a leading mobile network operator to advance its network objectives and improve connectivity throughout the region.”

Additionally, the parties agreed to enter into a build-to-suit agreement, whereby SBA Communications will build up to an additional 2,500 sites, further solidifying the partnership.

The transaction is subject to regulatory approval in the various markets and is expected to close in mid-2025.

In January of this year, Tigo Colombia announced the sale of 1,100 towers to the firm KKR, with the aim of simplifying its business and focusing on serving customers.