Telefonica sells 10% stake in Telxius to Pontegadea for EUR 379 mln

News Broadband Spain 27 JUL 2018
Telefonica sells 10% stake in Telxius to Pontegadea for EUR 379 mln

Telefonica has announced the sale of a 9.99 percent stake in its infrastructure subsidiary Telxius to Pontegadea, the holding company of Zara founder Amancio Ortega, for a total of EUR 378.8 million. The sale was structured via Telefonica's subsidiary, Pontel Participaciones, which owns 60 percent of Telxius' capital stock. Pontegadea now owns 16.65 percent of Pontel and Telefonica the remaining 83.35 percent, with the operator stressing that it retains operational control of Telxius via a majority stake.

In a statement, Telefonica said the deal is part of its strategy to reduce debt and strengthen its balance sheet to maintain shareholder remuneration. Last year the company sold 40 percent of Telxius to private equity firm KKR for a total of EUR 1.275 billion.

Telxius was created in 2016 and currently owns and operates a portfolio of over 16,400 telecommunications towers in six countries and manages an international network with approximately 87,000 kilometers of submarine fibre optic cables, including the Marea system across the Atlantic Ocean and Brusa (Brazil-Puerto Rico-US).

Categories:

Fixed

Companies:

Telefonica,  Telxius

Countries:

Spain

Tags:

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

Related Articles

SPAIN 19 JAN 2023

Telefonica and Pontegadea close Telxius acquisition

Telefonica said it has closed the sale of the remaining 40 percent stake in its infrastructure unit Telxius from KKR for EUR 216 million in partnership with the Pontegadea holding company of Zara founder Amancio Ortega. Around a year after announcing the agreement, the Pontel vehicle of the two entities has obtained all the necessary regulatory and competition approvals to complete the transaction.

EUROPE 13 JAN 2021

Telefonica sells infrastructure unit Telxius to American Tower for EUR 7.7 bln

Telefonica has reached an agreement to sell its towers division Telxius to US infrastructure giant American Tower Corporation for EUR 7.7 billion in cash. The deal will see ATC take over a total of 30,722 tower sites in Germany, Spain, Brazil, Chile, Peru and Argentina, with the US-based company pledging to spend a further USD 500 million to build a committed pipeline of around 3,300 new sites in Germany and Brazil through 2025. It has also pledged to maintain employment levels as well as all current lease

SPAIN 20 JUL 2020

Telefonica studying IPO of tower unit Telxius in 2021 - report

Telefonica is looking to further monetise its infrastructure assets by launching an initial public offering of its subsidiary Telxius, according to unnamed sources cited by Bloomberg. The operator could list its infrastructure arm as early as next year and could raise around EUR 5.75 billion for its 50 percent stake, said the report, with one source indicating that the company also wants to separate its undersea cable operations from the mast operations ahead of any decisions.

SPAIN 6 MAR 2020

Telefonica considering split of submarine cables from Telxius - report

Telefonica is planning to split its submarine cables business from the rest of its infrastructure subsidiary Telxius, according to unnamed sources cited by Bloomberg and subsequently reported by El Economista. The company is in the process of discussing the move with advisers and investors, including 40 percent shareholder KKR and Pontegadea, the holding company of Zara founder Amancio Ortega, which owns a 10 percent stake. Separating its submarine cable assets from the rest of the Telxius infrastructure wo

GLOBAL 24 JUN 2019

Telxius and De-Cix reach global interconnection deal

Telefonica's infrastructure subsidiary Telxius has announced a partnership with Germany-based internet exchange operator De-Cix to offer access and interconnection services from any Telxius point of presence in the world to the De-Cix exchanges in Frankfurt, Marseille, Madrid, New York and Dallas.

LATIN AMERICA AND THE CARIBBEAN 10 MAY 2019

Telefonica organic revenue growth improves to 3.8% in Q1

Telefonica reported organic revenue growth improving to 3.8 percent in the first quarter, led by the UK and South America as well as continued growth in its home market Spain. OIBDA was up a slower 1 percent on an organic basis, and the company maintained its forecast for both figures to grow around 2 percent in the full year.

GLOBAL 16 APR 2019

Telefonica close to deal to sell data centres - report

Telefonica expects to complete the sale of its data centres after Easter, after receiving binding offers a week and a half ago, reports newspaper Expansion. Asterion Industrial Partners, an investment fund founded by former KKR director Jesus Olmos, is considered well-placed to win the deal, according to the paper's sources, while other candidates include EQT, I-Squared Capital, Digital Realty and Equinix. 

EUROPE 13 MAR 2019

Telia Carrier and Telxius agree to combine wholesale network capacity

Global wholesale provider Telia Carrier and Telefonica's infrastructure subsidiary Telxius have announced an agreement for multi-terabit capacity services combining their respective networks. Under the terms of the deal, Telia Carrier's terrestrial European and North American footprint will join up with Telxius' Spanish footprint and its new 6,600km transatlantic Marea cable system, giving both firms additional network muscle, lower latency and reach. It will also create a bridge linking the US with other c

SPAIN 6 NOV 2018

Telefonica mulling sale of data centre business - report

Telefonica is evaluating the sale of its data centre business with a view to cutting down its debt pile, according to unnamed sources cited by Bloomberg. The company has hired financial advisers and is currently in the process of gauging interest from potential buyers including data centre specialist firms as well as infrastructure and private-equity funds, said the sources, adding that the sale could earn the Spanish group EUR 500 million to EUR 1 billion, depending on the assets included.

SPAIN 31 OCT 2018

Telxius revenues up 30% in Q3 on Brusa cable capacity sale

Telefonica's infrastructure subsidiary Telxius reported third-quarter revenues up 30.6 percent from a year earlier to EUR 231 million thanks above all to a one-off sale of capacity related to its Brusa (Brazil-Puerto Rico-US) cable, which is now ready for service. The company's tower revenues grew 11.8 percent year on year to EUR 85 million while cable revenues soared by 50.1 percent to EUR 149 million due to the Brusa transaction. Operating income before depreciation and amortisation (OIBDA) came in at EUR

LATIN AMERICA AND THE CARIBBEAN 31 OCT 2018

Telefonica raises outlook as organic revenue growth improves to 2.7% in Q3

Telefonica raised its full-year outlook for organic revenue growth to around 2 percent from 1 percent, after results strengthened in the third quarter. While total revenues at the Spanish operator were down 8.3 percent year-on-year to EUR 11.699 billion, organic growth was 2.7 percent, up from 2.0 percent in the previous quarter. Growth was led by South America and the UK, while the biggest markets Spain and Brazil were also in positive territory.

PUERTO RICO 8 OCT 2018

Puerto Rico eyeing USD 130 mln undersea cable project

The Puerto Rican government is planning to roll out an underwater fibre optic cable across the island to help its infrastructure withstand future natural disasters, reports local daily El Nuevo Dia, citing governor Ricardo Rosello. In the wake of last year's Hurricane Maria, the government has submitted a report to US Congress indicating that the cable's first connection point would be in the southern coastal town of Ponce and would cost in the region of USD 130 million, providing an alternative to the exis

GLOBAL 3 OCT 2018

Sigfox inks Telxius tower monitoring deal

IoT connectivity provider Sigfox has announced a contract to monitor the quality of service (QoS) and security of the telecommunications towers of Telefonica's infrastructure subsidiary Telxius. Under the terms of the deal, Sigfox will use its Low Power Wide Area Network (LPWAN), to monitor the nearly 16,000-plus telecommunication towers owned by Telxius in five countries in real time. Sigfox said the system allows event and status changes to be provisioned in a central cloud independently of existing local

SPAIN 26 SEP 2018

Infinera breaks subsea spectral efficiency record in Marea trials

Infinera has successfully completed a series of submarine field trials over Marea, a 6,600 km trans-Atlantic cable between Virginia Beach, Virginia and Bilbao, Spain. The trials used Infinera's fourth-generation Infinite Capacity Engine (ICE4) technology to achieve new records for trans-Atlantic real-time spectral efficiency of 6.21 bits per second per hertz (b/s/Hz) over 6,644 km, translating to a fibre capacity of 26.2 terabits per second (Tbps), and 4.46 b/s/Hz over 13,210 km for 18.6 Tbps fibre capacity

EUROPE 30 JUL 2018

Last week in telecoms: Q2 earnings and Spanish 5G auction drive up share prices

Last week's earnings reports were generally well received. Our European telecoms index rose 2.4 percent, versus a gain of 1.9 percent for the EuroStoxx 50 index. Other than that, 5G ruled the headlines, with Spain concluding an auction at not too high prices.

Just In

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

19 DEC 15:42

3 UK launches last-minute Christmas sale

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.