Boston, MA 09/24/2014 (wallstreetpr) – Verizon Communications Inc. (NYSE:VZ), which is rushing sale of its mobile network towers, has sought to take the help of TAP Advisors LLC in the matter.
$6 Billion Deal
The U.S. biggest mobile-phone company is seeking to sell-off its wireless network towers as early as by the end of this year. The company expects the deal to fetch it as much as $6 billion, which it plans to invest in spectrum purchases. In this endeavor, Verizon Communications Inc. (NYSE:VZ) has urged the assistance of TAP advisors, a New York-based boutique investment bank. According to a Bloomberg article, Verizon’s offer involves around 12,000 towers that it wants to sell or put on lease. The deal is anticipated to be announced any time within the next couple of months.
Following Latest Trends
Verizon’s towers’ sale is estimated to bring in around $6 billion, an assumption based on the tower price that rival AT&T Inc. (NYSE:T) collected in a similar deal last year. Wireless carriers have adopted the strategy of selling off their mobile network towers in order to raise cash. The strategy comes at a suited time when tower operators are showing up as willing potential takers. Some operators that have come up as eager buyers are SBA Communications Corporation (NASDAQ:SBAC), American Tower Corp (NYSE:AMT) and Crown Castle International Corp. (NYSE:CCI).
For the previous couple of U.S. tower sales, TAP has acted as the adviser, and Crown Castle as the taker. Verizon’s present action is speculated to be inspired by competitor AT&T’s recent sale of its towers in a $4.85 billion deal. The company had sold 600 towers, along with the exclusive rights to lease as many as 9,100 towers for around 28 years. T-Mobile US Inc (NYSE:TMUS) had also entered into a similar deal in 2012, which involved 7,200 of its towers. The deal was worth $2.4 billion.
Verizon Communications Inc. (NYSE:VZ) will also take part in the airwave November sale to be conducted by the Federal Communications Commission. According to Barclays PLC (ADR) (NYSE:BCS), the auction could raise it around $11 billion.