Stockholm-based private equity firm EQT Infrastructure has announced its acquisition of a 60 percent stake in a newly created entity, referred to as the "Company," which will own and operate the mobile and fixed network infrastructure of Italy's Wind Tre. CK Hutchison, the current owner of Wind Tre, will retain a 40 percent stake in the Company. The transaction values the newly formed entity at approximately EUR 3.4 billion.
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Growing Demand for Robust Digital Infrastructure in Europe
According to the official release, The need for robust and reliable digital infrastructure has been on the rise across Europe, driven by the increasing demand for mobile data traffic, 5G network densification, Internet of Things (IoT) applications, and emerging technologies.
Recognizing the need for significant investments and expansions in the Italian mobile network, this transaction aims to meet the growing demand for digital connectivity in the country.
Company to Become Italy's Largest Mobile Network Operator
Following the carve-out from Wind Tre, the Company will become the largest mobile network operator in Italy. It will take ownership and management of Wind Tre's mobile and fixed network infrastructure assets, including radio antennas, base stations, transport networks, and associated contracts. The Company will provide wholesale connectivity services to Wind Tre and other Italian mobile operators, said the official release.
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Advanced Network Coverage and Wholesale Services
The Company will be the first independent access network in Europe with a primary focus on mobile services, providing wholesale services to mobile operators through its advanced network. As of the end of 2022, the network already covered around 67 percent of Italy with 5G reception.
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EQT Infrastructure's Expertise to Drive Company's Growth Strategy
EQT Infrastructure, known for its expertise in developing digital infrastructure companies, will leverage its experience to support the Company's growth strategy. This includes expanding the network and service offerings and exploring additional growth opportunities in areas such as fixed wireless access, IoT, and private networks.
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The collaboration aims to position the Company as a leading player in Italy's telecommunications landscape, offering reliable and innovative connectivity solutions.
The transaction is subject to customary regulatory approvals and is expected to be completed within the next six to nine months, pending the fulfilment of necessary procedures.