Boston, MA 11/04/2013 (wallstreetpr) – AT&T Inc. (NYSE:T) has boosted its cash balance through the sale of towers to Crown castle in a deal estimated to be worth $4.85 billion. This deal gives AT&T the much needed extra cash to continue with its network upgrades plans as well as opportunity to venture more into European Expansion. The deal makes AT&T one of the only carriers to offload its antenna sites to independent carriers as the deal is thought to include the leasing or selling of up to 9,700 wireless towers. The company is currently engaged in a network upgrade plans totaling $14 billion. The company also has plans to go forth with stock buyback plans that could reach as much as $11 billion while it also thinks of acquiring more acquisitions in Europe.
The towers values had reached a lifetime high necessitating the deal to go on as fast as possible as the company strives to have a stronger cash balance. The deal is expected to double AT&T cash holdings which stood at $4.5 billion as of the close of the second quarter. In the deal, Crown Castle is expected to buy up to 600 AT&T towers while also acquire exclusive rights of leasing and operating up to 9,100 others. Crown castle also has the option of buying any leased towers for $4.2 billion as from 2032.
AT&T is currently exploring other acquisitions in Europe that are to be boost its revenue reserves , the company is rumored to be thinking of buying Vodafone Group Assets. The company total towers currently stand at 10,000 able to generate annual revenue totaling $326 million. The deal involves AT&T leasing the towers for a minimum of 10 years with a 2% annual rent increase, AT&T will also have options of renewing the deal for a total of 50 years.