The Spanish telco reportedly aims to sell 49% of the infrastructure firm for $1.56 billion
Spanish telecommunications operator Telefonica has received several offers to acquire a stake in its infrastructure subsidiary Telxius, according to a statement filed with Spanish market regulator CNMV.
The telco said that it’s in the process of negotiating and analyzing the various options available for the Telxius stake.
According to recent press reports, the Spanish company is in advanced talks with a number of private equity firms, including KKR, CVC and Ardian, plus sovereign fund GIC, to sell a 49% stake in Telxius for at least 1.47 billion euros ($1.56 billion).
The reports also revealed that negotiations are in the final stages and that a deal could be reached before March. Telefonica is also said to have hired HSBC to advise it on the sale.
Launched in February 2016, Telxius currently manages approximately 16,000 telecommunication towers in Spain and other countries, as well as the Telefónica Group´s international network of 31,000 kilometers of submarine fiber optic cable, including SAM-1, a submarine cable that connects the United States with Central America and South America.
Telefonica said it had decided to create this new company in a move to monetize its assets and obtain new resources to reduce debt and boost investments.
In October 2016, the Spanish telco had abandoned plans to launch an initial public offering of its infrastructure unit Telxius as Telefonica considered inadequate the valuation of the company implicit in the purchase orders received. The telco previously expected to raise up to 1.5 billion euros from the IPO.
Idea open to divest in telecoms towers business in India.
In related infrastructure news, Indian mobile operator Idea Cellular said it is looking to raise funds by selling part or complete stake in its tower business, local press reported.
The company’s managing director Himanshu Kapania, said that the telco is open to monetize its own towers as well as its stake in Indus Towers.
Idea owns 100% of its 11,000 telecoms towers via its wholly-owned arm Idea Cellular Infrastructure Services. The mobile operator also has a 11% stake in Indus Towers – a telecom tower JV with rival telcos Airtel and Vodafone.
