Millicom subsidiary Tigo Colombia has agreed to sell 1,100 telecom towers to US investment firm KKR.

Millicom announced the deal yesterday (January 24), which will see KKR lease the wireless communications towers to Tigo Colombia to support its wireless networks.

Colombia towers
– Getty Images

Financial terms of the transaction were not disclosed.

“This transaction with KKR, a leading digital infrastructure franchise with deep sector expertise and commitment to the region, is another step towards crystallizing the value of our tower sites across Latin America, simplifying our business, and allowing us to focus on servicing our customers," said Mauricio Ramos, CEO and chairman of the board of Millicom.

"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.”

KKR said it plans to work with digital infrastructure platform NEXO LatAm, which supports the implementation of KKR's infrastructure strategy throughout Latin America.

The investment from KKR is being made through its KKR Global Infrastructure Investors IV fund.

Tigo is Colombia's third-largest operator with more than 15 million customers.

Parent company Millicom kicked off plans to transfer tower assets to its new tower company Lati, with the towerco expected to cover more than 10,500 cell towers across Latin America, in countries including Guatemala, Honduras, Bolivia, Colombia, Panama, Nicaragua, El Salvador, and Paraguay.

Last year, Millicom was also linked with Apollo Global Management and Marcelo Claure over a potential sale.