Grupo Torresur (“GTS”), a pioneer in developing the independent telecommunications tower market in Brazil, has signed an agreement to sell one of its portfolio companies, São Paulo Cinco Locação de Torres Ltda. (“SP5”), to IHS Holding Limited (NYSE: IHS) for US$315 million on a cash and debt free basis.
Pro forma for the closing of this transaction, GTS will own and operate approximately 2,800 towers in Brazil through São Paulo Locação de Torres Ltda. (“SPT”). Established in 2011 through sale-leaseback transactions with Vivo and Telefonica, SPT represents the original GTS platform and remains well positioned to continue to capitalize on the attractive growth opportunities in Brazil.
Jimmy Eisenstein, GTS Chairman and CEO, said, “The sale of our SP5 portfolio represents the culmination of our strategy to create an important infrastructure business focusing on historically underserved regions of Brazil. Since our acquisition, our team has driven strong organic revenue growth, proving the critical role of SP5 to the market.”
Michael Gray, Managing Director representing Providence Equity Partners (“Providence”), the controlling shareholder of GTS, commented, “We are proud of all that GTS’s outstanding management and employees have accomplished since we made our first investment in 2010, during the early stages of the independent tower market in Brazil. We believe the GTS team has created an exceptional business with tremendous long-term value and industry-leading operating results.”
JP Morgan served as exclusive financial advisor to GTS and Providence on the transaction.
The transaction is subject to regulatory approvals and is expected to close in Q1 2022.