GP Investments to Sell Its Stake in BR Towers for Around US$250 Million (Latin America)

Source: GP Investments

Latin America-focused alternative investment company GP Investments has signed definitive agreements to sell its stake in Brazil-based cellphone tower management company BR Towers to a subsidiary of United States-based wireless communications provider American Tower Corporation. The transaction will be structured through GP Investments’ GP Capital Partners V and GPCP5 I Fundo de Investimento em Participações (jointly GPCPV). The enterprise value attributed to BR Towers is BRL2.18 billion (approximately US$978 million), translating to about US$250 million for GPCPV’s 41 percent stake in BR Towers’ total capital. The sale will generate a reported gross cash-on-cash return multiple of 2.8x and an estimated gross IRR of 67 percent in USD for GPCPV. The transaction is subject to certain conditions, including the approval of Brazilian antitrust agency CADE.