Cinven agrees USD680m purchase of fibre operator GNFT

10 Jun 2014

European private equity firm Cinven has announced an agreement to purchase Gas Natural Fenosa Telecomunicaciones (GNFT), a neutral telecom operator providing fibre infrastructure and transmission services to telecom operators in Spain and Latin America, from Gas Natural Fenosa (GNF) for a total consideration of EUR510 million (USD680 million). In announcing the deal, Cinven said it regarded GNFT as an ‘attractive investment’ on the basis of a number of factors, including: the company’s unique network with capillary presence in the main metropolitan areas of Spain and Latin American countries in which it operates; its consistent organic growth track record; and structural growth in data traffic and fibre networks deployments in both Spain and Latin America driven by increased usage and penetration of fixed and mobile broadband.

Commenting on the deal, Jorge Quemada, partner at Cinven, noted: ‘GNFT is a well invested fibre business in Spain with strong cash flow generation. [It] also has exposure to high growth markets in Central and South America. GNFT has an excellent management team with a significant track record in the telecom industry with a combined 86 years in the sector and we look forward to working with them.’

Spain, Cinven, Gas Natural Fenosa Telecomunicaciones (GNFT)