Linklaters in New York and Brazil’s Stocche Forbes Advogados have helped an infrastructure subsidiary of US investment group Digital Colony acquire telecoms company Phoenix Tower do Brasil from US private equity giant Blackstone.

US firm Akin Gump Strauss Hauer & Feld LLP and Machado Meyer Advogados in São Paulo helped the seller for the deal, which closed on 24 November.

Digital Colony acquired the telecoms portfolio through its Highline do Brasil infrastructure investment arm. The value remains confidential.

The purchase adds 2,500 telecommunications facilities and towers to Highline’s Brazilian portfolio, giving it a new total of 3,200 communication towers and small cell operations.

The transaction is expected to consolidate Highline’s position as one of Brazil’s largest privately-owned telecoms tower businesses. With a growing portfolio, the Digital Colony subsidiary intends to widen its footprint within Brazil’s 4G mobile network, while it also plans to tap into the country’s growing 5G market.

With around US$20 billion worth of assets under management, Digital Colony is among the world’s largest infrastructure investment funds. It acquired Highline from Brazilian counterpart Pátria Investimentos at the end of last year, while it grew its digital technology holdings after purchasing several data centres from Brazilian outsourcing group UOL Diveo in April.

Besides Brazil, Digital Colony is also present in Chile, Colombia and Peru through its telecoms subsidiary Andean Telecoms Partners, which received a US$170 million loan in August.

US private equity group Blackstone is among the world’s largest private equity businesses. As of September, the investment group holds some US$584 billion worth of assets under management.

Counsel to Highline do Brasil

Partners Gabriel Silva, Matt Poulter and Adam Lurie, counsel Max Levine, and associates Gabriela Astolphi, Marcelo Lopes, Isabella Correa, Emma Cano, Celeste Jackson and Lizzeth Merchan in New York

Stocche Forbes Advogados
Partner André Stocche and associates Teo Galvão, Yasmim Figueiredo and Lionel Visconti in São Paulo

Counsel to Blackstone

Akin Gump Strauss Hauer & Feld LLP

Machado Meyer Advogados
Partner Arthur Bardawil Penteado and associates Mariana Meditsch and Laura Ducati Dabronzo in São Paulo

(Latin Lawyer - 02.12.2020)