Telefónica’s infrastructure company Telxius has reached an agreement with Telefónica Deutschland to acquire approximately 10,100 sites.
The agreement includes the commitment to build 2,400 additional sites (BTS), ensuring exceptional future growth in Europe’s largest market.
The transaction, subject to regulatory approvals, is worth €1.5 billion and will see Telxius double the size of its tower portfolio to over 32,800. Approximately 80% of its sites are in Europe, while the rest of the portfolio is in Latin America.
Telxius will finance 90% of the value of the acquisition via a capital increase – to be subscribed by its current shareholders in proportion to their participation in the company- and through internally generated resources. The remaining 10% will be financed through incremental debt. Telxius is owned by Telefónica (50.01%), KKR (40%) while the remaining (9.99%) stake is owned by Pontegadea.
This transaction will reduce Telefónica Group’s net debt by approximately €500 million between 2020 and 2021, due to the contribution made by Telefónica’s partners in Telxius, net of the corresponding tax impacts.
The agreement, executed in large part during lock-down, strengthens the position of Telefónica Infra, a portfolio management unit which owns Telefónica Group’s stakes in infrastructure vehicles and has 50.01% of Telxius as its main asset.