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GP Investments makes 67% IRR selling Brazilian telecom operator to American Tower Corporation

27 Jun 2014

telecommunication-tower-1-1362830-mBermuda-based private equity firm GP Investments has almost tripled its investment in telecom provider BR Towers after American Tower Corp bought the business for close to $1bn.

GP is set to hand over its 41 per cent stake in the company it created just two years ago, when it bought about 2,000 Brazilian telephone towers for BRL503m ($250m).

The firm made the investment through its GP Capital Partners V fund, which set aside between $90m and $164m for the project.

American Tower has agreed to buy 100 per cent of the business from GP, its co-investors and other shareholders for an enterprise value of BRL2.18bn ($978m).

GP said the deal had netted it a cash multiple of 2.8 times and a gross IRR of about 67 per cent.

Under GP’s ownership BR Towers added more than 4,000 towers and rooftops to its portfolio from mobile operators Vivo and Oi and delivered more than 300 built-to-suit sites to carriers.

GP Investments’ CEO Antonio Bonchristiano said, “BR Towers is a typical case of an investment in a segment where Brazil’s infrastructure requirements meet GP Investments’ expertise in sourcing non-obvious deals and managing companies to deliver growth.”

The Brazilian private equity firm was similarly successful earlier this month when it sold its 46 per cent stake fleet monitoring technology specialist Sascar Participações for a return of 2.6 times and an IRR of 33 per cent.

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