| Mon 6 Dec 2010, 9:18 | | MTN - MTN Group Limited - American Tower Corporation and MTN Group announce the |
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MTN
MTN
MTN - MTN Group Limited - American Tower Corporation and MTN Group announce the
formation of Towerco Ghana
MTN Group Limited
(Incorporated in the Republic of South Africa)
Registration number 1994/009584/06
Share code: MTN
ISIN code: ZAE000042164
("MTN" or "the Group")
American Tower Corporation
American Tower Contact: Leah MTN Contact: Xolisa Vapi
Stearns General Manager, Group
Director, Investor Relations Communications
Telephone: +1 617 375 7500 Telephone: +27 83 200 4363
AMERICAN TOWER CORPORATION AND MTN GROUP ANNOUNCE THE FORMATION OF TOWERCO GHANA
Boston, Massachusetts and Johannesburg, South Africa - December 6, 2010:
American Tower Corporation (NYSE: AMT) and MTN Group Limited ("MTN Group") (JSE:
MTN) today announced that they have entered into a definitive agreement to
establish a joint venture in Ghana ("TowerCo Ghana"). TowerCo Ghana, which will
be managed by American Tower, will be owned by a holding company of which a
wholly owned American Tower subsidiary will hold a 51% share and a wholly owned
MTN Group subsidiary will hold a 49% share. The transaction involves the sale of
up to 1,876 of MTN Ghana`s existing sites to TowerCo Ghana for an agreed
purchase price of up to approximately $428.3 million, of which American Tower
will pay up to approximately $218.5 million for its 51% stake in the holding
company. MTN Ghana will be the anchor tenant, on commercial terms, on each of
the towers being purchased. American Tower also expects that TowerCo Ghana will
build at least an additional 400 sites for both MTN Ghana and other wireless
operators in Ghana over the next five years. The transaction is expected to
close by early 2011, subject to customary closing conditions.
"We are pleased to announce the launch of our operations in Ghana in partnership
with MTN, Africa`s largest mobile operator," said Jim Taiclet, Chairman,
President and Chief Executive Officer of American Tower Corporation. "Creating
an independent tower company in Ghana reflects the execution of our strategy to
invest in selected African markets with strong wireless growth potential and a
positive investment climate. As a partner, MTN`s stature, vision and operational
experience in Africa are highly complementary. Combined with our tower leasing
expertise, we believe TowerCo Ghana is exceptionally well placed to maximize the
market opportunity in Ghana."
Group President and CEO of MTN Group, Phuthuma Nhleko, added that
"Infrastructure sharing makes absolute sense for MTN and was a key aspect of the
updated strategy outlined to MTN shareholders on 15 July 2010. We have in the
recent past looked at various permutations to reduce our infrastructure roll-out
costs as well as the on-going costs of operating our passive infrastructure in
our key markets. Because market conditions in each of the markets are unique, we
have resolved to evaluate infrastructure sharing opportunities on a market by
market basis. The Ghanaian market has presented us with an opportunity to
partner with a leading independent global tower operator. We have already
established a good working relationship with the team at American Tower, who
have demonstrated their extensive experience in operating towers in both the
developed world and in emerging markets," concluded Nhleko.
About American Tower
American Tower is a leading independent owner, operator and developer of
broadcast and wireless communications sites. American Tower currently owns and
operates over 33,000 communications sites in the United States, Latin America
and India. For more information about American Tower, please visit
www.americantower.com.
About MTN Group
Launched in 1994, the MTN Group is a multinational telecommunications group,
operating in 21 countries in Africa, Asia and the Middle East. The MTN Group is
listed on the JSE Securities Exchange in South Africa under the share code:
"MTN." As of 30 September 2010, MTN recorded 134.4 million subscribers across
its operations in Afghanistan, Benin, Botswana, Cameroon, Cote d`Ivoire, Cyprus,
Ghana, Guinea Bissau, Guinea Republic, Iran, Liberia, Nigeria, Republic of Congo
(Congo Brazzaville), Rwanda, South Africa, Sudan, Swaziland, Syria, Uganda,
Yemen and Zambia. Visit us at www.mtn.com and www.mtnfootball.com.
Fairland
6 December 2010
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
Date: 06/12/2010 09:18:00 Produced by the JSE SENS Department.
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