Cellnex has reached an agreement with CK Hutchison Holdings (Hutchison) to acquire its European telecommunications towers and sites.
The transactions encompass 24,600 telecom sites in Austria, Denmark, Ireland, Italy, the United Kingdom and Sweden when all transactions are closed. The transactions include the roll-out of up to 5,250 sites over the next eight years with an investment of c. EUR 1.4 bn. The agreement is structured as six separate transactions, with closing in each country whenever the relevant conditions for the transaction are met.
The agreement contemplates an initial investment of around EUR 10bn, of which around EUR 8.6bn will be paid in cash and the remaining balance in new shares of Cellnex Telecom S.A. (Hutchison is expected to own around 5% of Cellnex’s enlarged share capital).
The transaction is expected to generate annual Adjusted EBITDA of approximately EUR 970m and a recurring levered free cash flow of around EUR 620m upon the completion of all the perimeter, including new sites, third party tenants and potential efficiencies.
After this transaction, Cellnex will thus significantly strengthen its strategic alliance with Hutchison and increase its footprint in Europe.
AZ Capital
Advised in the sale of
CK Hutchison Holdings (Hutchison), European telecom towers and sites
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