Telefonica has announced that it intends to accelerate a plan to monetise its extensive tower portfolio as part of a strategy aimed at maximising shareholder value. The decision was taken after the company brought forward a board meeting by more than two weeks to discuss plans to continue reducing its debt pile, boost its share price and cut its workforce.
In a statement Telefonica said it currently operates through a portfolio of around 130,000 mast sites globally and owns, directly or through its subsidiaries, a portfolio of some 68,000 sites across 12 markets. The company’s tower unit Telxius owns around 18,000 sites, meaning a remaining 50,000 or so are directly owned by other Telefonica Group units. Over 60 percent of latter are located in Telefonica's four major countries of operation (Spain, the UK, Germany and Brazil).
It now intends to “capture further synergies from network sharing” and to “capitalise on interest in our infrastructure both from public and private” groups in the sector. The aim is to monetise an additional portfolio of telecommunications assets within the next 12 months, it said, adding that the company is “analysing different monetisation options in order to deliver value for its shareholders whilst retaining maximum operational and strategic flexibility.”
Telefonica estimated that its portfolio of around 50,000 sites could generate some EUR 830 million in revenues and EUR 360 million in OIBDA and could require EUR 25 million in maintenance capital expenditure on a full year pro-forma basis.
