After Bloomberg reported that Crown Castle (CCI) is preparing to sell its fiber/small cell business to TPG (TPG) for $8B, Wells Fargo estimates that a sale at that valuation would be about 27% dilutive to reported and cash AFFO per share. Such a sale will likely prompt a “material,” or 25%-plus, cut to AFFO per share and its dividend of roughly 30%-40%, argues the analyst. While “ultimately, this is the right long-term move,” it will likely create more pressure in the interim, adds the analyst, who keeps an Underweight rating on Crown Castle
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Read More on CCI:
- TPG in advanced talks to acquire Crown Castle fiber unit for $8B, Bloomberg says
- TPG in advanced talks to acquire Crown Castle fiber unit, Bloomberg says
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