Canadian telecommunications carrier and mobile phone retailer Glentel Inc (TSE:GLN) said it would sell its tower operations to US wireless communication towers operator SBA Communications Corp (NASDAQ:SBAC) for as much as CAD12m ($12.1m/€9.8m).
Glentel is selling its non-core tower business and assets as it wants to focus on core initiatives including digital migration and the expansion of its digital networks, president and CEO Tom Skidmore said. The deal would also eliminate risk, maintenance and capital costs for the Canadian company, allowing it to provide network solutions to clients across the country.
Glentel’s licensed frequency portfolio will not be affected by the sale, the executive added.
For SBA, this deal aligns with a strategy to build itself as the largest provider of communications sites in Canada, vice president of SBA Canada, Edward Hachey, said in a comment. The addition of Glentel’s towers would allow the buyer to meet the needs of its local customers for increased coverage and network quality across the country, Hachey explained.
Completion is expected by the end of this year, with the final price to be determined based on the tower site revenue yield at closing, the vendor said.
The Canadian company, set up in 1963, runs more than 545 corporate stores at over 330 locations in Canada, Costco Wholesale stores and business centres as well as 210 retail sites in the US
