American Tower (AMT) Responds to Muddy Waters with Financial Info
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Price: $167.33 -1.28%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.9%
EPS Growth %: +98.7%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.9%
EPS Growth %: +98.7%
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American Tower Corporation (NYSE: AMT) released information in response to a report published today, which contained inaccurate statements. While the Company disputes a number of statements in the report, the following information is being provided specifically in response to allegations with respect to the Company's acquisition of certain communications sites in Brazil in 2011.
The Company completed the acquisition of a privately-held, independently operated tower company in Brazil, which included the purchase of 666 communications sites during the year ended December 31, 2011 for an aggregate purchase price of approximately BRL 974 million, or approximately $585 million.
To fund the acquisition, the Company's Brazilian subsidiary, ATC do Brasil – Cessao de Infra-Estruturas Ltda., utilized cash on hand from a combination of intercompany loans and equity contributions from its parent, and cash from operations. The intercompany loans of BRL 554 million, or approximately $335 million are registered with the Central Bank of Brazil. In addition, the Company utilized equity contributions of BRL 303 million, or approximately $184 million which are also registered with the Central Bank of Brazil. The remainder of the aggregate purchase price was cash from operations. The Company received documentation confirming the full payment of these funds to the seller.
The Company retained an internationally-recognized accounting firm to assist in the purchase price allocation of the acquisition. In addition, Deloitte & Touche LLP audited the Company’s financial statements for each of its last three fiscal years.
The Company completed the acquisition of a privately-held, independently operated tower company in Brazil, which included the purchase of 666 communications sites during the year ended December 31, 2011 for an aggregate purchase price of approximately BRL 974 million, or approximately $585 million.
To fund the acquisition, the Company's Brazilian subsidiary, ATC do Brasil – Cessao de Infra-Estruturas Ltda., utilized cash on hand from a combination of intercompany loans and equity contributions from its parent, and cash from operations. The intercompany loans of BRL 554 million, or approximately $335 million are registered with the Central Bank of Brazil. In addition, the Company utilized equity contributions of BRL 303 million, or approximately $184 million which are also registered with the Central Bank of Brazil. The remainder of the aggregate purchase price was cash from operations. The Company received documentation confirming the full payment of these funds to the seller.
The Company retained an internationally-recognized accounting firm to assist in the purchase price allocation of the acquisition. In addition, Deloitte & Touche LLP audited the Company’s financial statements for each of its last three fiscal years.
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