Telefónica sells Telxius towers division to American Towers

February 10 2016, Telefónica introduced the creation of Telxius, a brand new world firm that brings collectively sure infrastructure belongings of the group that sought to handle its infrastructures at a worldwide stage, in a extra specialised and centered manner, with the purpose of accelerating the companies supplied to others operators, enhance profitability on capital employed and have the opportunity to take part extra actively in current progress alternatives.

30,722 tower websites bought

Telefónica has signed an settlement with American Tower Corporation for the sale of its telecommunications tower division in Europe and Latin America for an quantity of 7.7 billion euros, payable in money. The operation includes two separate and impartial transactions, one for every of the markets. Both are topic to the corresponding regulatory authorizations, as at all times occurs in these circumstances.

It have to be made clear that Telefónica operators, akin to Movistar in Spain, will keep the present tower leasing contracts signed with the businesses bought by Telxius subsidiaries. This will enable them proceed offering your companies in phrases related to the present ones.

Without a doubt, an important factor on a monetary stage is that Telefónica will cut back the online monetary debt by roughly 4.6 billion euros and the leverage ratio by roughly 0.three occasions. This operation is a part of the group’s technique that seeks to cut back natural debt. The markets are already rewarding Telefónica with a rise of virtually 8% and plainly the worst is over with respect to the operator’s value. All this may be translated into will increase within the brief and medium time period.

TelxiusJose Maria Alvarez-Pallete, Chairman of Telefónica, has indicated that “this is an operation that makes strategic sense within our roadmap. American Towers was our second supplier after Telxius ”, as well as to clarifying that“ after this great operation we will continue to focus on our most ambitious objectives: the integration of O2 with Virgin in the United Kingdom, the purchase of Oi’s mobile assets in Brazil and the debt reduction ”.

Cellnex brake

Right now, American Tower has turn into Telefónica’s primary supplier in each Europe and Latin America. In addition to sustaining its standing as a companion in strategic tasks in Brazil, Argentina and Colombia. This is essential if we take the idea Cellnex curiosity in shopping for the towers of Telefónica. The Spanish tower large introduced in mid-2020 that it deliberate to make investments up to 11 billion euros in infrastructure, which might enable it to purchase up to 15,000 new websites.

When every little thing appeared prepared in order that Cellnex could be the one to take the cat to the water shopping for the towers of Telefónica, American Towers burst in with drive and turns into a significant competitor for the Spanish. Despite this, Cellnex confirmed a few days in the past the closing of the acquisition of CK Hutchison’s telecommunications tower belongings in Austria, Denmark and Ireland.