AMT recently announced that it had agreed to acquire a total of 4,456 towers from NII Holdings, Inc. (NASDAQ: NIHD) for approximately $811 million, which is a blended average price of $182,000 per tower. This valuation is in the range of 15x to 21x EBITDA, even the low end of which is a worryingly high multiple for any tower portfolio – particularly one as risky as this one. Including required capex, that multiple increases about one turn (i.e. 16x to 22x). We discussed the possibility of this transaction happening in our initial report, and raised red flags about certain aspects of it. , This transaction appears to be yet another low quality, growth at any price transaction AMT management is making merely because it can (and is compensated to do). On a not unrelated note, last week, CEO James Taiclet pocketed approximately $4 million in profits from exercising options for 100,000 shares and immediately selling all of the stock.
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