SBA Communications – What an SBA take-private could mean for the tower stocks
Following Bloomberg reporting late last week that SBAC (Neutral, PT $212) has received preliminary takeover interest and has hired advisors to evaluate this interest, TMT Finance has now reported KKR and Brookfield are among the infrastructure funds expressing interest. Discussions reportedly date back to the end of last year. Finally, they reported that ‘a source’ informs them the ‘sellside’ is seeking a $250 per share valuation, representing a 46% premium to the unaffected price prior to the initial report. If true, we are truly surprised by this number given SBAC’s historical bullishness on the space and that it once traded at a high of $389. We discuss why we’re surprised and the sector implications.SBA Communications is a holding company. Through its subsidiaries, the company is an owner and operator of wireless communications infrastructure, including tower structures, rooftops, and other structures that support antennas used for wireless communications. The company's operations are in the U.S. and its territories. In its site leasing business, the company leases antenna space to wireless service providers on towers that the company owns or operates and manages rooftop and tower sites for property owners under various contractual arrangements. In its site development business, the company assists wireless service providers in developing and maintaining their own wireless service networks.
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