The alternative investment firm Stonepeak has agreed to buy a 49% stake in Cellnex Sweden and Cellnex Denmark (Cellnex Nordics) for €730 million.
Cellnex will continue to manage the day-to-day business of Cellnex Nordics and consolidate the results of its operations.
Cellnex Nordics provides mobile network operators with colocation services for their wireless networking equipment through a network totalling 4,557 sites across Sweden and Denmark today. The business also holds commitments and options to build and operate approximately 2,500 additional sites in the region.
Commenting on the deal, Marco Patuano, Cellnex CEO, said: “The sale of a stake in our Nordic business at an appropriate valuation marks another significant step forward in our goal to attain investment grade ratings. The agreement with Stonepeak shows Cellnex’s ability to attract the interest of high-quality financial partners who understand and value the inherent quality of the assets as well as the future opportunities in these markets”.
Cyrus Gentry, Stonepeak MD, added: “We believe Cellnex Nordics, as the region’s leading independent tower company, is strategically well positioned to capture outsized organic and inorganic growth over the coming years. We view partnering with Cellnex, with its consistent track record of financial performance, execution on built-to-suit delivery, and mergers and acquisitions, as a natural fit for Stonepeak’s Core infrastructure strategy. We look forward to working closely with the Cellnex team to help further their strategic objectives in both Sweden and Denmark”.
The transaction is subject to regulatory approvals and is expected to be completed by the first quarter of 2024 at the latest. Cellnex will use the proceeds of this deal to reduce its debt, in line with the objectives set in November 2022 which prioritise organic growth and achieving an investment grade credit rating by S&P.
Nomura International is serving as lead financial advisor, Guggenheim Securities is serving as financial advisor, and Herbert Smith Freehills is serving as legal counsel to Stonepeak.
AZ Capital is serving as financial advisor and Baker & McKenzie is serving as legal counsel to Cellnex.