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Digicel completes sale, leaseback agreement with Phoenix Tower

Published:Friday | September 28, 2018 | 11:56 AM

Digicel has completed a sale and leaseback agreement with Phoenix Tower International (PTI) through its Jamaican subsidiary, Phoenix Tower Jamaica Limited in relation to a number of its towers in Jamaica, the telecoms company announced today.

The sale and leaseback arrangement means PTI assumes ownership and management rights of 451 of Digicel’s wireless communication tower sites in Jamaica.

The necessary regulatory approvals and licences have been sought and granted and proceeds from the transaction are in the region of US$90 million, Digicel said in a release.

Speaking about the deal, PTI CEO, Dagan Kasavana said: “This latest transaction between PTI and Digicel deepens our excellent working relationship and strengthens PTI’s position as the premier wireless infrastructure provider in the Caribbean.”

He added that “Jamaica is poised for significant wireless growth and data consumption in the years to come and PTI looks forward to helping our Jamaican customers, landlords, and the communities we operate in meet these growing demands successfully.”

Digicel Group CEO, Alex Matuschka said that “with similar agreements with PTI for sites in El Salvador and the French West Indies, this was the next natural step and we are delighted to be extending our partnership. This move is consistent with our stated intent to divest non-strategic assets and focus on building our business for the future."

- business@gleanerjm.com