Cellnex targets European growth with €4B war chest - Mobile World Live

Cellnex targets European growth with €4B war chest

23 JUL 2020

Cellnex Telecom detailed plans to increase its share capital by €4 billion, seeking to attract new funds as it looks expand its telecoms infrastructure portfolio across Europe.

In a statement, the infrastructure company said its board of directors had approved plans to issue 101.4 million new shares priced at €39.45 each, a 25 per cent discount on its closing price of €56.14 yesterday (22 July).

The company said it will use the funds to build up a war chest to fuel growth via acquisition, revealing it is actively analysing market opportunities for an aggregate amount of up to €11 billion.

Financial Times reported Cellnex Telecom’s move would make it Europe’s largest equity offering of 2020, building on growth since the company’s IPO in 2015.

The company already announced investments, or commitments to invest, approximately €14.1 billion until 2027 for the acquisition or construction of 50,400 telecoms sites across eight countries, adding to 10,400 sites it already owns.

CEO Tobias Martinez said the company would use the fresh resources to consolidate and expand its position in the eight countries it is present in, as well as look to other European markets.

“Beyond agreements closed in 2019 and the first six months of 2020, we continue to analyse growth prospects,” he said.

Cellnex Telecom significantly boosted its position in Portugal over the past 12 months, striking a deal in April to acquire 2,000 telecoms sites from operator Nos: at the start of the year, it signed an €800 million deal to acquire Portuguese tower operator Omtel

Back

Author

Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

Read more

Related

Tags