European infrastructure company Cellnex has signed agreements for the acquisition of 24,600 CK Hutchison towers and telecommunications sites for 10 billion euros, strengthening its presence in Italy, the UNITED Kingdom and Ireland and expanding to 3 other markets.
The announcement comes a week after CK Hutchison revealed it in complex conversations with Cellnex about the agreement to sell its European assets, which consolidated into a separate unit in August while exploring the characteristics of the division.
Cellnex said the deal would be the largest to date and strengthens its presence in its 3 existing markets, while adding Austria, Sweden and Denmark to its presence.
The agreement consists of six separate transactions, one for individual market, of the 10 billion euros agreed, 8. 6 billion euros will be delivered in money to CK Hutchison and the remaining 1. 4 billion in Cellnex percentages, representing 0. 5% of its percentage capital.
Cellnex and CK Hutchison also stated that they will mark long-term service agreements for an initial 15-year era, an extension of another 15 years.
He said he expects profits to rise from 1. 2 billion euros to 3. 8 billion euros after the final touch of planned deployments, and has committed to deploying 5,250 more sites over the next 8 years thanks to an investment of 1. 4 billion euros.
Future contract sales are expected to increase from EUR 33 billion to EUR 86 billion, thanks to pan-European agreements.
CK Hutchison’s strategy follows a number of traders who have to sell their tower assets as a component of a capital raising initiative to finance investments in spaces such as 5G and debt reduction.
Cellnex CEO Tobias Martínez said the agreement underscores the incorporation of the company “as an herbal spouse for all mobile operators in Europe. “
The conclusion of the agreements will be staggered, as they must be approved by the festival government of each country.
If all transactions are successful, Cellnex will have a total of 103,000 towers and telecommunications sites.
Kavit joined Mobile World Live in May 2015 as a content editor. He began his career as a journalist at the Press Association before joining Euromoney’s graduate program in April 2010. Read more >>
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