KPN to sell German mobile-phone towers to American Tower for $500 mn

Dutch telecommunications company Royal KPN NV (KPN) has agreed to sell part of its German mobile-phone towers to American Tower Corp for €393 million ($500 million) in cash.

The sale comes after the Hague-based company sold a large part of its mobile towers in the Netherlands between 2008 and 2012.  Late last month it sold a part of its Dutch mobile towers to Indonesia's Protelindo, which owns and operates towers for wireless communications, for $97 million.

Located throughout Germany, the mobile towers are used by both its German unit E-Plus and other mobile network operators.

As part of the transaction, E-Plus and American Tower Corporation have entered into a long-term lease agreement, under which E-Plus will lease back space on the mobile towers, which it requires for its own network equipment.

E-Plus already leases space on a large number of mobile towers in Germany.

''We are very pleased with this transaction. It is in accordance with our strategy, as we do not consider the ownership and development of mobile towers to be a core part of our operations. It is also at an attractive valuation,'' KPN, Netherlands' largest telecommunications company, said in a statement.

''This transaction in Germany follows the sale of a large part of our mobile towers in the Netherlands between 2008 and 2012. American Tower Corporation has a strong operational track record and we look forward to a successful partnership, which will support E-Plus' network stability and business prospects,'' it added.

Boston-based American Tower operates wireless broadcast towers worldwide.