Telxius

History

2021: American Tower Corporation purchased Telxius for 7.7 billion euros

In the middle of January, 2021 the SA Telefonica telecommunication company signed the agreement with the largest operator of towers of cellular communication in the USA of American Tower Corporation (ATC) about sale of the business of telecommunication towers in Europe and Latin America of Telxius. The transaction is estimated at 7.7 billion euros.

Under the terms of the transaction ATC will purchase in total 30,722 cellular towers in Germany, Spain, Brazil, Chile, Peru and Argentina, the American company intends to spend $500 million more for construction about 3300 new objects in Germany and Brazil till 2025. The company also undertook the obligation to support the employment level at the enterprise and also all current agreements of lease.

American Tower Corporation purchased Telxius for 7.7 billion euros

The Spanish group considered Telxius sale over a year with consultants and investors, including the 40 percent shareholder of KKR and Pontegadea, the holding company of the founder of Zara Amancio Ortega which possesses a 10 percent share. It is said in the statement of the operator that he intends to use revenue from the transaction which includes capital gain of about 3.5 billion euros, for reduction of the net financial debt for 4.6 billion euros.

The chief executive officer of Telefonica Jose Maria Alvares Pallet told that the transaction makes strategic sense within the road map of the company as American Tower was the second supplier of Telefonica after Telxius. He added that further the company will focus on the planned O2 company merger with Virgin Media in Great Britain, purchase of Oi Mobile in Brazil and reduction of a debt.

If the deal is closed, ATC will become the leading supplier of Telefonica in Europe and Latin America, saving at the same time the present positions of the partner in strategic projects in Brazil, Argentina and Colombia.^[1]

Notes