Phoenix Tower International to Buy 3,800 Towers from WOM in Chile
Posted on 07/06/2022
Phoenix Tower International (PTI), through its local Chilean subsidiary, Phoenix Tower International Chile SpA, executed a definitive agreement with WOM S.A. (WOM) to acquire up to 3,800 telecommunications sites in Chile. As part of the transaction, PTI will acquire approximately 2,334 tower sites at the initial closing and 1,466 additional sites by 2024 for a total consideration of approximately US$ 930 million, a portion of which will be paid upon transfer of the additional sites. Phoenix Tower International was founded in 2013. WOM is a mobile telephony and broadband company belonging to the international investment fund Novator Partners LLP. Novator Partners LLP is a British private equity investment firm based in London owned by Björgólfur Thor Björgólfsson. Its name derives from the English acronym for Word of Mouth.
After accounting for this transaction, PTI will become the largest communications tower owner in Chile, expanding its global presence to over 22,000 towers in 19 countries.
Funding
The transaction will be funded in part by a financing facility led by Scotiabank and supplemented by PTI’s additional finance providers (affiliates of Caisse de dépôt et placement du Québec and Ares Management Corporation). The equity for the transaction was provided by various Blackstone (NYSE:BX) funds, including those managed by Blackstone’s infrastructure and tactical opportunities businesses.
Advisors
Greenberg Traurig, LLP, Simpson Thacher & Bartlett, LLP, Choate Hall & Stewart, LLP and Barros Silva Varela & Vigil Abogados Limitada acted as legal advisors to PTI. Scotiabank acted as sole lead arranger, bookrunner and exclusive financial advisor to PTI. Allen & Overy and Albagli Zaliasnik acted as legal advisors to WOM. Citi acted as exclusive financial advisor to WOM.
The initial closing of the transaction is expected to occur in Q3 2022 subject to the satisfaction of customary closing conditions.