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American Tower buys in Brazil, sells in Nigeria

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American Tower
Communications   To focus on the core business

American Tower Corporation has reached an agreement with TIM Celular, a wholly-owned subsidiary of TIM Participaçoes, a publicly traded subsidiary of Telecom Italia, to acquire two portfolios of towers in Brazil.

The first portfolio includes approximately 5,240 towers. The second portfolio includes approximately 1,240 towers, which are subject to certain preemptive acquisition rights held by third parties.

The total consideration is expected to be approximately 3 billion Brazilian Reais (approximately $1.2 billion at the current exchange rate), subject to customary adjustments. American Tower intends to finance the acquisition in a manner consistent with its previously announced leverage targets.

American Tower anticipates that the towers will generate approximately 435 million Brazilian Reais (approximately $171 million at the current exchange rate) in annual run rate revenues (which includes ground rent pass-through and existing collocation revenue), and approximately 191 million Brazilian Reais (approximately $75 million at the current exchange rate) in annual gross margin. TIM will be the anchor tenant on each portfolio under leases with 20-year initial terms.

The transactions are expected to close in the first half of 2015, subject to customary closing conditions, regulatory approval and for the second portfolio, expiration of the third parties' preemptive rights.

American Tower and Bharti Airtel have entered into a definitive agreement, through Bharti Airtel Limited's subsidiary company, Bharti Airtel International Netherlands, for the sale of over 4,800 of Airtel's communications towers in Nigeria. Airtel will be the anchor tenant on the portfolio under a lease with a ten-year initial term.

The agreement will allow Airtel to focus on its core business and customers, enable it to deleverage through debt reduction and will significantly reduce its on-going capital expenditures on passive infrastructure in Nigeria.

American Tower and Airtel expect to close the acquisition during the first half of 2015, subject to customary closing conditions and regulatory approval.

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