GLENTEL Inc. (TSX:GLN), best known for its Wireless Wave stores, is selling its radio communications towers to SBA Communications, an American company, for up to $12 million.
SBA Communications owns and operates wireless communications infrastructure in the U.S., Canada and Central America.
The final price will be determined by the tower site revenue yield at closing, the company said in a press release. The sale is expected to close by December 31 this year.
GLENTEL owns more than 200 radio towers across Canada. Most are used for two-way radio for uses such as police and fire radio systems, although some of them also host cellular network transmitters and receivers.
The sale does not mean GLENTEL is getting out of the radio business, however.
"We're just selling the real estate and we'll rent from these guys or whoever else," Jas Boprarai told Business in Vancouver.
Tom Skidmore, CEO of GLENTEL, said, "We believe the timing is right for GLENTEL to divest its non-core tower assets.
"The sale to SBA offers GLENTEL a unique opportunity to focus on its core priorities such as digital migration and the expansion of its digital networks, while delivering significant value to our shareholders."
GLENTEL has two main divisions: retail and wireless communications. GLENTEL owns 545 retail operations in North America, including 330 in Canada. The retail operations include its Wireless Wave stores.
