What’s Going on with American Tower Corporation?
American Tower Corporation (AMT) stock slipped after the company revealed its planned public offering of common stock. At market open today, the shares were down 1.07% to $246.22 a share.
The Boston-based company, which owns and operates cell towers around the world, put this public offering forward as part of its efforts to acquire the European and Latin American tower divisions of Telxius Telecom S.A. — although this share offering is “not contingent upon the consummation of the Telxius transaction,” according to an official AMT press release.
What Does This Mean for AMT?
In the proposed AMT public offering, the company plans on offering 8,500,000 shares of its common stock. Underwriters will be given the option to buy up to as many as 850,000 additional shares to cover over-allotments, should the need arise.
Proceeds from this offering, along with cash and other funding mechanisms, will be applied toward the Telxius transaction. “This transaction is transformational for our European business and will establish American Tower as one of the largest independent communications infrastructure providers in Europe,” American Tower CEO Tom Bartlett said in January of the Telxius deal. He also went on to add that the transaction was, “…complimentary for our Latin American portfolio and positions us to drive strong long-term organic growth across both regions.”
AMT has a Fundamental Rank of 65. Find out what this means to you and get the rest of the rankings on AMT!
American Tower owns and operates more than 180,000 cell towers throughout the U.S., Asia, Latin America, Europe, and the Middle East. It leases space on its towers to wireless service providers, which install equipment on the towers to support their wireless networks. The company has a very concentrated customer base, with most revenue in each market being generated by just the top few mobile carriers. The company operates more than 40,000 towers in the U.S., which accounted for more than half of its total revenue in 2020. Outside the U.S., American Tower's greatest presence is in India and Brazil, where it operates roughly 75,000 and 19,000 towers, respectively. American Tower operates as a real estate investment trust.
