French telecommunications company Iliad has completed the sale of its 30 percent stake in OnTower Poland, a Polish telecommunications infrastructure company, to Cellnex, which holds 70 percent stake. This transaction now grants Cellnex full control over its subsidiary in Poland, further strengthening its position in the market. According to the statement, the deal, valued at approximately EUR 510 million, is considered a pivotal step in Iliad's ongoing strategic evaluation of its portfolio.
Also Read: Orange Poland Strengthens Network in Tourist Destinations for Holidays
OnTower Poland
The setup of OnTower Poland was the result of a collaboration between Iliad and Cellnex in 2021. The joint venture was formed as part of Cellnex's acquisition of approximately 7,000 mobile sites from Polish operator Play. With this latest transaction, Cellnex is set to become the sole owner of the group's subsidiary in Poland with a 100 percent stake.
Iliad's Stake in OnTower Poland
The sale of Iliad's stake in OnTower Poland aligns with the company's overarching objective of optimizing its portfolio and unlocking additional value. Iliad is said to expedite its path towards achieving an investment-grade rating by actively assessing strategic options. The company has committed to securing a BBB- rating from S&P by 2024 at the latest and maintaining a BBB rating from Fitch.
OnTower Poland's Expansion Plans and Partnership with Play
OnTower Poland currently operates an extensive network of 8,500 sites throughout Poland. According to the statement, the company has ambitious plans to deploy approximately 3,400 new sites by 2030, further expanding its infrastructure footprint. Additionally, OnTower Poland has a 20-year service provision contract with Play, a leading mobile operator in Poland. This contract can be extended for successive 10-year periods, ensuring a long-term partnership between the two entities.
Also Read: Ericsson Reaches One Million 5G Radios Milestone for Telia Produced in Poland
Cellnex
Cellnex, known for its expertise in telecommunications infrastructure management, has a portfolio of around 135,000 sites. The company operates in multiple countries, including Spain, Italy, the Netherlands, France, Switzerland, the United Kingdom, Ireland, Portugal, Austria, Denmark, Sweden, and now Poland.
With this strategic transaction, Cellnex strengthens its position in the Polish telecommunications market and enhances its portfolio of telecom infrastructure assets.
