Iliad in talks to sell mobile towers in France and Italy to Cellnex for EUR 2 bln

Nieuws Mobiel Frankrijk 7 MAY 2019
Iliad in talks to sell mobile towers in France and Italy to Cellnex for EUR 2 bln

France's Iliad has announced exclusive negotiations with Spanish infrastructure operator Cellnex Telecom for the sale of 70 percent of the company managing its mobile telecom infrastructure in France and 100 percent of the company managing its passive mobile towers infrastructure in Italy. The agreement encompasses 5,700 sites in France plus 2,200 sites in Italy and is worth an initial EUR 2 billion, said Iliad, adding that the transaction would help to strengthen its balance sheet and general financial position as well accelerate 4G and 5G mobile rollouts in France and Italy.

In its statement, Iliad added that the deal is expected to close in the fourth quarter of this year and will serve to boost its financial strength by reducing reported leverage by around 1 times EBITDA. “This operation accompanies the group’s new growth and innovation cycle. It will enable the efficient deployment of tomorrow’s infrastructures for the benefit of all operators and also aims to better respond to territorial coverage issues,” said Iliad CEO Thomas Reynaud.

News of the deal comes after Cellnex announced a EUR 1.198 billion capital increase to strengthen the group’s resources and fund its further expansion, with CEO Tobias Martinez describing 2019 as a "year of activity" for the operator. At the end of December Cellnex had a total of 23,440 sites at the end of December and is already present in France through its various deals with Iliad’s local rival Bouygues Telecom. 


 

Categories:

Mobiel

Companies:

Iliad,  Cellnex

Countries:

Frankrijk,  Italië

Tags:

Network equipment, Wireless, Wholesale, M&A buyouts & divestments

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