A bidding war for Oi’s 8,000 towers could just around the corner, with media suggesting that giants American Tower Corporation (ATC) and IHS Towers are poised to bid
Today, Brazilian media is reporting that both ATC and IHS Towers are lining up to bid for OI’s 8,000 mobile towers, situated throughout Brazil, according to anonymous sources close to the matter.
Oi has already received a binding offer of roughly $326 million in early August for the towers from NK 108 Empreendimentos e Participacoes (NK 108), an affiliate of Brazilian infrastructure developer Highline do Brasil II Infraestrutura de Telecomunicacoes (Highline). The deal would see around $210 million paid to Oi immediately, with the rest of the sum paid up until 2026, depending on the level of infrastructure usage.
Now, according to reports, any new proposals from other potential suitors are expected to be submitted by Monday afternoon, with the minimum bid at least matching that of Highline.
All three of these tower companies have been growing at pace in recent years, with tower infrastructure becoming an ever more attractive long-term investment, particularly in today’s unstable global economy.
Highline has increased its Brazilian tower portfolio significantly in recent years through a number of acquisitions, including buying 637 towers from Oi itself last year and over 3,000 via the acquisition of Phoenix Tower Brazil back in 2020.
ATC, meanwhile, most notably acquired Telefonica’s tower unit, Telxius, last year, giving it access to an additional 30,722 mobile towers spread throughout Germany, Spain, Brazil, Chile, Peru, and Argentina.
Finally, IHS Tower’s most recent acquisitions have been on the African continent, most notably paying telecoms giant MTN $412 million for around 13,000 sites in South Africa. However, IHS has also expanded its Brazilian tower holdings already this year, with its acquisition of São Paulo Cinco Locação de Torres Ltda. (“SP5”) increasing their portfolio in the country to over 7,000 sites.