Towerco continues to chip away at its debt pile with focus shifting to its Austrian and Irish businesses
Infrastructure investment company Stonepeak has completed the circa €730m acquisition of a 49% interest in Cellnex Sweden and Cellnex Denmark, of which €558m will be recognised upfront. Cellnex will use the proceeds of this deal to reduce its debt, in line with objectives it set in November 2022 which are organic growth and achieving an investment grade credit rating by the end of next year.
Last week, media reports suggested Cellnex was planning to sell its Austrian and Irish businesses or stakes in the two units as part of its strategy to cut its debt. The company chose not to respond to the speculation but given the market reaction to its announced Nordic sale in September, the towerco’s push to reduce debt will see similar deals on the table.
The Cellnex Nordics network currently consists of around 4,600 sites across Sweden and Denmark, with additional commitments and options to build and operate more than 2,400 additional sites in the region. Going forward, Cellnex will continue to consolidate the results of its operations and manage the day-to-day business in consultation with Stonepeak.
It’s just over 2.5 years since Cellnex acquired the sites from 3 Danmark and 3 Sverige. Cellnex is the largest tower operator in Europe with more than 100,000 sites across 12 countries. Its site portfolio is well-spread in the region, with the largest number of sites in France, Italy, Poland and Spain
Natural fit
“We are pleased to have completed this transaction, which represents a natural fit for our core infrastructure strategy as well as a significant milestone in what we hope will be a long-term partnership with Cellnex,” said Stonepeak managing director Cyrus Gentry.
“We look forward to working with the Cellnex management team in pursuing the significant value creation opportunities that we believe lie ahead in Sweden and Denmark,” he added.
“The early closing of the sale of a minority stake in our Nordic business marks another significant step forward in our goal to attain investment grade ratings,” said Cellnex CEO Marco Patuano (above).
“As we did recall at the moment of the agreement’s announcement, this deal shows Cellnex’s ability to attract the interest of high-quality financial partners who understand and value the inherent quality of the assets as well as the future opportunities in these markets,” he added.
Nomura International Plc is serving as lead financial advisor, Guggenheim Securities is serving as financial advisor, and Herbert Smith Freehills LLP is serving as legal counsel to Stonepeak. AZ Capital is serving as financial advisor and Baker & McKenzie LLP is serving as legal counsel to Cellnex.