Written by dimp on Mar 26, 2009 at 6:23 pm
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In November 2008, when SureWest Communications announced its agreement to sell its wireless telecommunications towers to Global Tower Partners, it said it expected the final aggregate purchase price to be in the range of $9.5 million to $10.2 million. The company said it expected an initial closing in the fourth quarter, at which time it would receive “a substantial portion” of the purchase price.
The transaction didn’t close as early as anticipated, nor did it net SureWest quite as much as the company predicted. SureWest announced the completion of the sale on Feb. 27, and the company said it netted $9.2 million for the towers.
SureWest previously sold its wireless assets to Verizon Wireless as part of its plan to divest non-core assets and focus on providing advanced telephone, Internet and television services. “The net proceeds from the sale will continue to enhance our financial flexibility and support our commitment to growing the broadband business,” said Steve Oldham, SureWest CEO. Where previously the proceeds seemed earmarked to fund expansion for SureWest’s fiber network, with the change in the financial climate, the money now may be used to pay down some of SureWest’s debt.
Marc Ganzi, CEO of Global Tower Partners, said, “The SureWest towers acquisition affirms our commitment to being one of the leading acquirers of premier tower locations in the United States. We are excited to close this transaction with SureWest and believe these unique locations will address the growing needs of our customers in enhancing their coverage and network quality throughout Northern California.”
GTP owns or master-leases more than 10,000 sites, including more than 3,300 towers throughout the United States.