Liberty Latin America (LLA) has agreed to sell approximately 1,300 telecom towers to Phoenix Tower International (PTI) for $407 million.

The deal will see the monetization of tower sites across Panama, Jamaica, the Bahamas, Puerto Rico, Barbados, and the British Virgin Islands.

Towers Panama
– Getty Images

According to the company, the transaction includes long-term Master Lease Agreements for each market for LLA's continued use of the telecommunications towers infrastructure, once the deal is finalized.

In a statement, LLA noted that the agreement includes arrangements to extend coverage with a further 500 sites being built by LLA and Phoenix over the next five years.

“We are pleased to work with a high-quality partner with extensive operating experience in our region in PTI and reach an agreement that crystallizes the value of our mobile tower infrastructure assets," said Balan Nair, president and CEO of Liberty Latin America.

"In addition, the long-term lease agreements and ongoing coverage extension will enable us to continue delivering leading mobile services to our customers and support network expansion including future 5G deployment plans across the Caribbean and Latin America, while lowering capital costs associated with these assets."

The transaction is expected to close within three to six months, subject to customary conditions and certain government approvals.

The company stated that the net proceeds from the deal are expected to be used to reduce debt.

Just last week, LLA agreed to acquire Dish Network's spectrum assets in Puerto Rico and the US Virgin Islands for $256 million. The deal also includes 120,000 prepaid mobile subscribers in those markets in exchange for cash and international roaming credits.

Cell tower owner PTI struck an agreement to enter the German market last month, and has identified Europe as an area for expansion, acquiring a further 1,978 sites in France in September.

Following that acquisition, PTI now owns more than 3,600 sites in France, which is its biggest market, with the company noting it's on course to hit 5,000 in the country within two years.

In total, the company operates over 23,000 telecom towers across Europe, the US, Latin America, and the Caribbean.