Spanish telecom giant Telefonica is aiming to create a joint venture with the private equity arm of German insurer Allianz to finance a EUR5 billion (USD5.8 billion) infrastructure investment in Germany, Reuters cited a report by Spanish newspaper Expansion as saying. The pair will allegedly each own a 50% stake in the joint venture, which will invest in the deployment of fibre-optic networks in Germany.
Meanwhile, EQT Infrastructure V has signed an agreement to co-invest in Deutsche Glasfaser alongside existing shareholder EQT Infrastructure IV. Post the closing of the transaction, EQT Infrastructure V will hold a 12% stake in the German fibre-optic network company. After the acquisition of inexio late last year and of Deutsche Glasfaser (closed together with OMERS in May 2020), EQT Infrastructure IV combined the two companies into the new Deutsche Glasfaser Group. Following the merger of the two companies, EQT states that additional growth and development opportunities have been identified, adding that ‘EQT Infrastructure V’s participation will help to capture these opportunities and secure support for the new Deutsche Glasfaser Group’s full potential plan’. The closing of the transaction is expected in Q4 2020.