Telefonica Deutschland offloads 10,100 towers to Telxius for EUR1.5bn

9 Jun 2020

Infrastructure firm Telxius has reached an agreement with Telefonica Deutschland Holding for the acquisition of nearly 10,100 tower sites in Germany, in a deal valued at EUR1.5 billion (USD1.7 billion). The agreement includes a commitment to build 2,400 new base transceiver stations (BTS); once the acquisition and the buildout programme are completed, Telxius tower portfolio will exceed 32,800 sites in the six countries where it operates, doubling its size since Telxius was created in 2016. Of these sites, approximately 80% are located in Europe (Spain and Germany), while the remaining portfolio is located in Latin America (Brazil, Peru, Chile and Argentina).

The transaction – which is subject to regulatory approvals – will be 90%-financed via a capital increase (to be subscribed by its current shareholders in proportion to their participation in the company) and by internally generated resources. The remaining 10% will be financed through incremental debt. The transaction is structured in two phases: Telxius will acquire approximately 60% of the portfolio in the first instance and the remaining 40% by August 2021.

According to TeleGeography’s GlobalComms Database, in February 2016 Telefonica created Telxius to bring together certain infrastructure assets, to manage group infrastructure on a global scale with a more focused approach, improve returns on investment and participate more actively in growth opportunities in the industry. A 40% stake in Telxius was later divested to investment firm KKR.

Germany, Telefonica Deutschland Holding, Telxius