PG&E is promoting the rights to put in wi-fi telecommunications antennas on its towers for $ 973 million

(Reuters) – California-based utility company PG&E announced Tuesday that it had sold the rights to attach wireless telecommunications antennas to its towers to a subsidiary of SBA Communications Corp for $ 973 million.

“The sale of these licenses, which cover over 700 towers, is expected to generate revenue of $ 973 million, subject to customary adjustments upon closing,” said a statement from PG&E.

The company will use the proceeds to pay off debts, reduce customer bills and offset future stock sales and stock dilution, it said on Tuesday.

PG&E interim chief financial officer Chris Foster said selling non-core assets like these is one way for the company to pursue its commitment to achieving financial stability after last year’s bankruptcy.

SBA will also be able to sub-license and market equipment for up to 28,000 additional towers, with PG&E receiving a portion of the sub-license revenue, it said. The deal is expected to close in early 2021.

Reporting by Kanishka Singh in Bengaluru; Arrangement by David Gregorio

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