“Russian towers” bought the company “Sector” which owns GSM towers in the Moscow, Kirov and Tver regions with total of 40 towers (their height ranges from 25 to 30 m). “Russian towers” rent them out to the big four GSM operators, on average one tower accounts for half of the tenant, as per company’s statement.
After this purchase the “Russian towers” will own 2500 towers. According to last year’s April presentation of “Russian towers”, the company had 1800 towers. Thus, during the year it increased the number of towers by almost 40%. “Russian towers” has already bought assets in Moscow this year: in late January, the company announced that it bought more than 150 dual purpose supports for the equipment of the state comapny “Promtelecom”.
Accurate valuation of the deal depends on the tower height and design, ad who clients and potential clients are. The multi-functional towers cost up to $80000, simple poles up to $40000, and the tower is the same height from 25 to 30 meters will cost in the range of $25000 to $40000. Based on this assumption, the company could pay for the assets from $1 million to $1.6 million.
According to SPARK database, “Spector” was registered in 2009 and in 2015 earned 16.9 million rubles, its net profit amounted to 3.9 million rubles. It is almost 2 times the income of the company for 2014 when it earned 8.7 million rubes and made a profit of 2.4 million rubles.
The towers rental market is at the beginning of consolidation. This is a business where scale brings good results, for example, saving by managing the energy and land bills as well as on the monitoring of the towers and their maintenance.
“Russian towers” want to continue to increase their assets in the Russian regions, increasing both the geographical coverage and the density of objects as provided in the message of company’s president Alexander Chub.
The operators own their own tower infrastructure, but in recent years, three of the four nationwide operators – MegaFon, VimpelCom and Tele2 are thinking about partial sale of towers, and MTS announced that it intends to lease space on more than 5,500 towers of the 15000 available to the operator.
In December last year it became known that “Russian towers” are negotiating with MTS (fourth biggest GSM operator) the lease or management the operator’s towers. The company also intends to purchase towers of VimpelCom Russia carrier who announced a tender for the sale of 10000 to 12000 towers, and in January of this year it became known that they agreed to sell the towers to “Russian towers” for $700 million. The closing of the transaction is planned in the II quarter of 2017.
MegaFon also has a special subsidiary company that manages its towers. “MegaFon” was going to transfer all of their 15 000 existing and newly built towers to its “First Tower Company” (FTC). Then “MegaFon” planned to sell a 49% stake in FTC. Right now the process of finding investors is on hold.