Home / Telefonica Deutschland sells off over 10,000 towers to Telxius, in €1.5bn deal

Telefonica Deutschland sells off over 10,000 towers to Telxius, in €1.5bn deal

As part of the agreement, Telxius has committed to build an additional 2,400 additional sites in Germany

Telefonica Deutschland sells off over 10,000 towers to Telxius, in €1.5bn deal

Germany’s third largest telco, Telefonica Deutschland has reached an agreement with telecoms infrastructure giant Telxius, to sell off 10,100 of its telecoms towers, in a deal worth €1.5 billion.

The agreement will see Telxius double the size of its tower portfolio to over 32,800 and cements its position as one of the leading neutral global infrastructure operators.

Approximately 80 per cent of Telxius’ telecoms sites are in Europe, while the rest of the portfolio is in Latin America.

Telxius will finance 90 per cent of the value of the acquisition via a capital increase -to be subscribed by its current shareholders in proportion to their participation in the company- and through internally generated resources. The remaining 10 per cent will be financed through incremental debt. Telxius is owned by Telefónica (50,01 per cent), KKR (40 per cent) while the remaining (9.99 per cent) stake is owned by Pontegadea, the company said in a statement to the press.

The deal will include a lease back agreement, which will allow Telefonica Deutschland to continue to access the towers, providing mobile network services across the country.

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