KKR is expanding its Latin American digital infrastructure footprint with the acquisition of about 1,100 wireless towers from Tigo Colombia, boosting its global infrastructure fund.
Millicom said its subsidiary Tigo Colombia has agreed to sell the towers to KKR Global Infrastructure Investors IV, a fund that mainly targets investment opportunities in OECD countries in North America and Western Europe.
The transaction includes a long-term tower leaseback agreement, ensuring Tigo Colombia retains network access to the acquired infrastructure.
KKR also intends to work in partnership with NEXO LatAm, a digital infrastructure platform that supports the implementation of KKR’s infrastructure strategy throughout Latin America.
Waldemar Szlezak, a partner in KKR’s infrastructure team, said: “KKR seeks to develop the telecommunications industry in Latin America through best-in-class mission-critical assets such as fibre, towers and small cells.
“This acquisition – along with KKR’s fibre investments in Chile, Colombia and Peru – underscores KKR’s commitment to its digital infrastructure platform in LatAm. This important agreement with Tigo is in line with our strategy of long-term partnerships with leading companies in the region.”
Mauricio Ramos, CEO and chairman of the board of Millicom, said the transaction with KKR represented “another step towards crystallising the value of our tower sites across Latin America, simplifying our business, and allowing us to focus on servicing our customers”.
Ramos added: “This transaction enhances our operational and capital efficiency in Colombia, with long-term lease obligations denominated in Colombian pesos, consistent with our objective of increasing our proportion of financing in local currency.”
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