Feb 2 (Reuters) - California utility PG&E said on Tuesday it sold the rights to put wireless telecom antennas on its towers to a subsidiary of SBA Communications Corp for $973 million.
“The sale of these licenses, which apply to over 700 towers, is expected to generate $973 million in initial proceeds, subject to customary closing adjustments”, PG&E said in a statement.
The company will use the proceeds to pay down debt, reduce customer bills and help offset future share sales and stock dilution, it said on Tuesday.
Chris Foster, PG&E’s interim chief financial officer, said that selling non-core assets like these was one way the company was continuing to follow through on its commitment of achieving financial stability made after it emerged from bankruptcy last year.
SBA will also be able to sub-license and market equipment on up to 28,000 additional towers, with PG&E to receive a portion of revenues from sub-licenses, the statement added. The deal is expected to close in early 2021. (Reporting by Kanishka Singh in Bengaluru; Editing by David Gregorio)