European infrastructure giant Cellnex has reached an agreement with Portuguese mobile operator Nos for the acquisition of 100% of its cell tower business, Nos Towering. The transaction initially involves 2,000 ‘telecommunications sites’ (towers and rooftop antennas), which are located in urban, suburban and rural areas of Portugal. Under the agreement, Cellnex and Nos have signed an initial 15-year contract, extendible by successive additional 15-year periods, under which Nos will continue to use the sites that Cellnex will operate, locating its voice and data signal transmission equipment there.
The transaction involves an initial payment of EUR375 million (USD411 million), in addition to expansion CAPEX of up to EUR175 million related to the rollout of 400 new sites, including a ‘build-to-suit’ programme and other agreed initiatives over the next six years. The acquisition will be financed with available cash, while the closing of the transaction is subject to the usual administrative and regulatory authorisations.
TeleGeography notes that the deal represents Cellnex’s second notable Portuguese transaction in quick succession, following its EUR800 million agreement to acquire OMTEL from Altice Europe and Belmont Infra Holding in January 2020. OMTEL is said to operate 3,000 sites in Portugal – around 25% of the overall cell towers in Portugal. Following the deal’s successful conclusion, Portugal will become Cellnex’s eighth European market.