SBAC Acquires Towers in Brazil - Analyst Blog
2012年12月27日 - 5:50PM
Zacks
Cell phone tower operator
SBA Communication Corp. (SBAC) has launched its
operations in Brazil by acquiring 800 wireless towers of Vivo S.A.,
a subsidiary of Telefonica Brazil S.A. (VIV). With
this acquisition, SBA Communications became the second U.S.
independent tower operator after American Tower
Corp (AMT) to enter the Brazilian market.
Per the deal, the Florida-based
tower company will pay $178 million to Vivo S.A. to acquire the
latter’s 800 tower sites. SBA Communication will use its existing
cash in hand and revolving credit facility to finance the
transaction.
According to the company, the
acquisition will be beneficial as it will provide them with a tower
footprint spread across Brazil along with tower leasing agreement
with the major Brazilian wireless carrier. SBA Communication
expects to generate $9.3–11.3 million in cash flow in 2013 from the
acquisition.
On the other hand, Madrid-based
Telefonica has been struggling with rising debt amid Spain’s
macroeconomic concern. As a result, it has been disposing off its
non-core assets and getting rid of the tower portfolio.
SBA Communication has been playing
the catch up game behind rival American Tower and Crown
Castle International (CCI) for quite some time as both
have expanded their tower portfolio through various acquisitions.
Crown Castle has opted for the inorganic growth route by acquiring
T-Mobile USA’s 7100 broadcast towers while American Corp picked the
inorganic route by purchasing towers in India, Ghana and
Brazil.
The acquisition has come at a very
good time for SBA Communications as tower companies are benefiting
from the low interest rate scenario in the U.S. which in turn is
aiding them to ramp up acquisitions in the country and
abroad.
With a Brazilian population base of
190 million and growing independent tower industry, the acquisition
will provide a great opportunity for the company to expand in an
international market. Additionally, the need to improve the network
infrastructure before the 2014 World Cup and 2016 Summer Olympics
offers SBA Communication the capital spending opportunity in a high
growth market like Brazil.
SBA Communication retains a Zacks
#3 Rank, implying a short-term Hold rating.
AMER TOWER CORP (AMT): Free Stock Analysis Report
CROWN CASTLE (CCI): Free Stock Analysis Report
SBA COMM CORP (SBAC): Free Stock Analysis Report
TELEF BRASIL SA (VIV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
SBA Communications (NASDAQ:SBAC)
過去 株価チャート
から 7 2024 まで 8 2024
SBA Communications (NASDAQ:SBAC)
過去 株価チャート
から 8 2023 まで 8 2024