Market_Referee

Cellnex acquires Arqiva’s Telecoms division

BME:CLNX   CELLNEX TELECOM, S.A.
Cellnex stocks are skyrocketing once again thanks to the announcement of Arqiva’s Telecoms aquisition.
Here is the most important information u might want to consider:

Cellnex to acquire 100% of the company resulting from an Arqiva’s carve-out process. It involves the acquisition of 7,400 sites and the rights to market c.900 sites spread across the UK
Total portfolio of sites in the UK (excluding those subject to market and operating rights) will reach c. 8,000. Total Cellnex portfolio will accumulate c.53,000 sites in 7 european markets.
The deal involves concessions to use street infrastructure as locations for telecom sites in 14 London boroughs.
Expected adjusted Ebitda to be generated in year 2020 amounts to c. GBP 170 M.
Expected to be funded through a combination of a GBP 2Bn syndicated loan facility and available cash In addition, Cellnex has approved the launch of a fully underwritten €2.5 Bn Rights Issue to support this acquisition and Cellnex’s pipeline.
The acquisition is subject to customary antitrust authorizations as well as other conditions precedent. Closing is expected in H2 2020
The deal follows Cellnex’s acquisition of marketing and operational rights for 220 high towers from BT in the UK last June.
82% of Cellnex revenues (“run rate”) will be generated outside Spain confirming the European scope and identity of the Cellnex project. Since the IPO in 2015 the Company has invested or committed to invest c. € 10.8 billion in the acquisition or construction –until 2027– of up to 42,700 infrastructures.

Still it will take time for company to begin generating substantial profits. Meaning that after some correction, it can be worth to look at.

Views and opinions for informational purposes only. Remember, past performance is no guarantee of future results.