CK Hutchison revealed it was in advanced negotiations with telecoms infrastructure company Cellnex to sell its portfolio of mobile towers in Europe, a deal which would raise €10 billion for the Hong Kong-based company.
In a regulatory filing, CK Hutchison suggested a deal was close, stating it had reached a substantial agreement on the key commercial terms for the disposal, although it added no definitive decision had been taken.
CK Hutchison spun off the assets, which comprise of 29,100 towers across six countries, into a separate unit in August and said at the time it was exploring options.
Bloomberg first reported Spain-based Cellnex was in talks with CK Hutchison about the deal last month, although a value was not disclosed at the time.
Should the deal be completed, it would see CK Hutchison follow a number of operators which arranged sales of their tower assets, as part of moves to raise capital to invest in 5G and reduce debt.
CK Hutchison added it would enter into service agreements with Cellnex to provide the operator with infrastructure services and to support an accelerated 5G network rollout.
Cellnex has invested heavily to expand its European footprint, most recently striking a deal with Iliad to operate 7,000 towers in Poland, in addition to agreements in Portugal and the UK this year. In total, it has agreed deals to manage 73,000 sites in Europe.
In July, Cellnex also detailed plans to increase its share capital by €4 billion, as it sought new funds to expand its portfolio through acquisition.Subscribe to our daily newsletter Back