KKR has acquired around 1,100 wireless towers from Tigo Colombia, a subsidiary of Millicom International Cellular S.A. The acquisition is part of KKR’s strategy to expand its Latin American digital infrastructure footprint and boost its global infrastructure fund. The deal was made through KKR Global Infrastructure Investors IV, a fund that mainly targets investment opportunities in OECD countries in North America and Western Europe. The acquisition includes a long-term tower leaseback agreement that ensures Tigo Colombia retains network access to the acquired infrastructure.
KKR plans to work in partnership with NEXO LatAm, a digital infrastructure platform that supports the implementation of KKR’s infrastructure strategy throughout Latin America. This acquisition, along with KKR’s fiber investments in Chile, Colombia, and Peru, underscores KKR’s commitment to its digital infrastructure platform in LatAm.
According to Waldemar Szlezak, a partner in KKR’s infrastructure team, KKR seeks to develop the telecommunications industry in Latin America through best-in-class mission-critical assets such as fiber, towers, and small cells. The acquisition of the wireless towers in Colombia is an important agreement with Tigo and is in line with KKR’s 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 represents another step towards crystallizing the value of their tower sites across Latin America, simplifying their business, and allowing them to focus on servicing their customers. This transaction enhances their operational and capital efficiency in Colombia, with long-term lease obligations denominated in Colombian pesos, consistent with their objective of increasing their proportion of financing in local currency.
Overall, KKR’s acquisition of Tigo Colombia’s wireless towers is a significant move in the telecommunications industry in Latin America. The long-term tower leaseback agreement ensures Tigo Colombia retains network access to the acquired infrastructure, and KKR’s partnership with NEXO LatAm supports the implementation of KKR’s infrastructure strategy throughout Latin America.