BURNABY, BC, Aug. 8, 2012 /CNW/ - GLENTEL Inc. (TSX: GLN) announced today that an agreement has been reached to sell its tower business assets to SBA Communications Corporation ("SBA") for a price of up to CAD $12 million. The final price will be determined by the tower site revenue yield at closing. The transaction is expected to close no later than December 31, 2012.
"We believe the timing is right for GLENTEL to divest its non-core tower assets," stated Tom Skidmore, GLENTEL's President and CEO. "The sale to SBA offers GLENTEL a unique opportunity to focus on its core priorities such as digital migration and the expansion of its digital networks, while delivering significant value to our shareholders. It also provides GLENTEL with the opportunity to offer network solutions to its customers on a national basis, while removing the risk, maintenance and capital expenditures required to manage and build a best-in-class tower network with enhanced communication capabilities that SBA is committed to provide in Canada. The transaction does not affect in any manner, directly or indirectly, GLENTEL's licensed frequency portfolio."
"This transaction represents our continued drive to establish SBA as the largest provider of communication sites in Canada," said Edward Hachey, Vice President, SBA Canada. "We are excited to complete a transaction with GLENTEL, and believe these unique locations will address the growing needs of our customers in enhancing their coverage and network quality throughout Canada. GLENTEL and SBA will work together to ensure a seamless transition for customers."
GLENTEL (TSX: GLN) is the largest independent multi-carrier mobile phone retailer in Canada and a leading provider of innovative and reliable telecommunications services and solutions in North America. Founded in 1963 and headquartered in Burnaby, BC, Canada, GLENTEL comprises three operating divisions - Retail Canada, Retail U.S. and Business - that service thousands of consumers and commercial communications customers. The company operates over 545 corporate stores with more than 330 locations in Canada located nationally in retail malls, Costco Wholesale stores, and business centres; and more than 210 retail locations in the United States. To its business and government customers, GLENTEL offers wireless service, rental equipment, satellite and terrestrial network systems and wireless asset monitoring. GLENTEL offers a choice of network carrier and wireless device or mobile phone to Canadian consumers and offers the family of wireless products and services of Verizon Wireless as one of its select six National Premium Retailers in the United States. GLENTEL operates its business under the trading names Glentel Wireless, WIRELESSWAVE, WAVE SANS FIL, Tbooth wireless, la cabine T sans fil, WIRELESS etc., WAVE SANS FIL etc., Mac Station, and Diamond Wireless - a Verizon National Premium Retailer in the U.S.
About SBA Communications Corporation
SBA Communications Corporation (NASDAQ: SBAC) is a first choice provider and leading owner and operator of wireless communications infrastructure in North and Central America. By "Building Better Wireless," SBA generates revenue from two primary businesses - site leasing and site development services. The primary focus of the Company is the leasing of antenna space on its multi-tenant towers to a variety of wireless service providers under long-term lease contracts. For more information please visit: www.sbasite.com.
Statements in this release relating to matters that are not historical fact are forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, general economic conditions, changes in technology, reliance on third-party manufacturing, managing rapid growth, limited intellectual property protection, and other risks and uncertainties described in GLENTEL's public filings with securities regulatory authorities.
NO STOCK EXCHANGE, SECURITIES COMMISSION, OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
SOURCE: Glentel Inc.
For further information:
Jas Boparai, Chief Financial Officer
Mark DeRussy, CFA