Cellnex to buy Arqiva telecoms in £2bn deal
Spanish group Cellnex is set to purchase the telecoms arm of UK’s Arqiva in a £2bn deal.
The deal will turn the Barcelona-based group the largest independent operator of wireless infrastructure in the UK.
Cellnex shares rose by over 2.5% up to €2.5 on Tuesday following the announcement of the purchase.
With the deal, Cellnex will acquire around 7,400 property locations and the commercial rights to 900 additional sites spread across Britain, turning Cellnex into the leading independent operator of wireless telecommunications infrastructure in Britain.
The Spanish group plans to fund the acquisition through a £2bn syndicated loan facility and from available cash reserves, the company said in a statement on Tuesday.
Adjusted earnings before interest, tax, depreciation and amortisation, were expected to be about £170m next year, Cellnex said
Reports over the summer suggested Arqiva’s owners planned to break-up the company, separating its television and radio broadcast infrastructure from its independent mobile masts. The Winchester-based company would retain its broadcast division.
“This agreement provides both stability and a focus for our future as we concentrate on the provision of broadcast infrastructure, end-to-end networks and connectivity solutions for our TV and radio customers, international content owners, data network providers and utilities,” said Simon Beresford-Wylie, chief executive of Arqiva.
“The majority of proceeds from the sale will be used to reduce debt, thereby providing a solid financial base for Arqiva and its shareholders to invest in the future of the UK’s terrestrial TV and radio platforms as well as its data networks and capability.”
Tobías Martínez, his opposite number at Cellnex, said: “The Arqiva telecoms division acquisition is a key milestone for Cellnex. Its strong UK asset base, revenues and financial profile, combined with its long history at the heart of UK digital infrastructure, make it a perfect addition to our operations.”