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Cellnex buying Arqiva’s telecoms unit
Posted on Tuesday, 08 October 2019 15:26
Spanish wireless telecommunications infrastructure operator Cellnex has signed on the dotted line to pick up the telecommunications division of UK-headquartered peer Arqiva.
Under the terms of the transaction, the buyer will pay GBP 2.00 billion for the business.
Completion is slated to follow during the second half of 2020, subject to antitrust approvals, among other conditions.
Cellnex plans to finance the acquisition using a GBP 2.00 billion syndicated loan facility, as well as available cash, while the group has also launched a rights issue worth EUR 2.50 billion in order to support the takeover.
Upon closing of the deal, the buyer will become the largest independent operator of wireless infrastructure in the UK.
The purchase comprises around 7,400 owned sites and the right to market a further 900 locations.
Cellnex chief executive Tobias Martinez said the deal is a key milestone for the buyer, noting: “Its strong UK asset-base, revenues and financial profile, combined with its long history at the heart of UK digital infrastructure, make it a perfect addition to our operations.
“This deal will not only add c.8,300 telecom sites to our portfolio but an experienced team that will further strengthen Cellnex’s demonstrated ability to meet its customers requirement.”
His counterpart at Arqiva, Simon Beresford-Wylie, stated: “This agreement provides both stability and a focus for our future as we concentrate on the provision of broadcast infrastructure, end-to-end networks and connectivity solutions for our TV and radio customers, international content owners, data network providers and utilities.”
He also noted that most of the proceeds have already been earmarked for the reduction of debt.
A sale has been on the cards since August, when the Telegraph reported that Arqiva’s owners were planning a break-up of the business and named Cellnex as a potential buyer for the towers unit.
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