Cellnex Telecom, a European tower and telecom infrastructure company, has agreed to sell its entire business (100 percent) in Ireland to Florida-based Phoenix Tower International (PTI) for around EUR 971 million, equivalent to a multiple of around 24x EBITDAaL. The transaction is subject to regulatory approvals, and Cellnex will use the proceeds to reduce its debt, in line with the objectives set in November 2022, Cellnex said on Tuesday.
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Cellnex in Ireland
Cellnex has been operating in Ireland since 2019, when it acquired tower operator Cignal, subsequently increasing its footprint in 2020 as a result of an agreement with CK Hutchison to acquire its infrastructure portfolio in six European countries, including Ireland. Cellnex currently manages around 1,900 sites in the country.
"The sale of our business in Ireland – at an appropriate valuation – is one further step within the company's 'Next Chapter', in line with our strategy, to achieve the goal of consolidating, simplifying our corporate structure and focusing our efforts on existing growth opportunities in the main markets in which we operate," Cellnex said. "We want to recognize PTI's readiness and swift decision-making and look forward to closing the deal on due time."
"We are delighted to announce this strategic transaction with Cellnex after a successful transaction in France, which signifies a significant step forward in Phoenix Tower International's expansion in Europe," PTI said. "We are eager to contribute to the development of robust and advanced telecommunications infrastructure that will benefit both the Irish people and our valued Mobile Network Operator partners."
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This transaction follows the remedies established by the French Competition Authority (FCA) as a result of Cellnex's acquisition of Hivory in 2021. Also, the transaction is in line with Cellnex's objectives, which prioritise organic growth and achieving an investment-grade credit rating by S&P.
Phoenix Tower International and Cellnex
Founded in 2013, Phoenix Tower International owns and operates over 29,000 telecom towers throughout Europe, the United States, Latin America, and the Caribbean. In Europe, PTI is present in several countries, including France, Italy, Ireland, Germany, Malta, and Cyprus.
Cellnex manages a portfolio of over 138,000 sites, including planned rollouts up to 2030, across 12 European countries, with a significant presence in Spain, France, the United Kingdom, Italy, and Poland.
