Cellnex and Deutsche Telekom today signed an agreement under which Cellnex Netherlands will integrate the 3,150 telecommunications towers and sites of T-Mobile Infra BV in the Netherlands. Following the green light from the Dutch competition authority, Cellnex will now integrate a total of 4,314 sites(1) in the Netherlands, making it a major independent telecom infrastructure operator in the Netherlands.
Cellnex and T-Mobile Netherlands BV have also signed a long-term supply agreement of 15 years, which can be automatically extended for periods of 10 years. The agreement also includes the roll-out of 180 new sites.
Once all new sites have been rolled out, the estimated EBITDA contribution of this transaction to the Group will increase to c. €63 million (IFRS16), while the Recurring Leveraged Free Cash Flow (RLFCF) will increase by c. €30 million.
Cellnex CEO Tobias Martinez announced “this transaction illustrates the strength of Cellnex’s relationships with its customers. Just as we have done in Switzerland with Sunrise, we have built a partnership with Deutsche Telekom in the Netherlands that allows us to consolidate our position as an independent provider of terminals in the Dutch market. At the same time, as this agreement involves Cellnex acquiring assets in exchange for shares in our local subsidiary, we are presenting the market with a new form of growth, one that increases our capacity to take on more projects without consuming the Group’s financial resources.”
The DIV fund
Deutsche Telekom is contributing the assets of T-Mobile Infra BV (3,150 locations) with a mortgage of €250 million to Cellnex Netherlands via the newly established DIV fund (“Digital Infrastructure Vehicle II SCSp”). This fund will hold a 38% stake in Cellnex Netherlands.
As part of the transaction, Cellnex has committed €200 million to the fund (DIV), in addition to a capital commitment of approximately €400 million by Deutsche Telekom in the form of an asset contribution.
The fund, which will be independently managed, is expected to seek suitable investments in European digital infrastructure assets such as fibre, towers and data centres
The investment in Cellnex Netherlands is aimed at creating value through growth as a result of the introduction of 5G and by realizing synergies as a result of the merger.
Finally, Cellnex and DIV have signed a so-called deal flow agreement under which Cellnex and DIV can collaborate on future transactions in the European tower sector.
Cellnex in the Netherlands
Cellnex’s presence in the Netherlands dates back to 2016, when it completed its first acquisitions of Protelindo and Shere (725 sites). In 2017, Cellnex acquired Alticom (30 very tall telecom & data towers with ‘edge datacenters’), after which the Cellnex Netherlands organization further expanded its site portfolio to the current total of 4,314 telecommunications sites and towers, including planned roll-outs.
About Cellnex Telecom
Cellnex Telecom is Europe’s largest operator of wireless telecommunications and broadcasting infrastructures with a portfolio of around 129,000 sites, of which around 75,000 are already operational and the remainder are in the completion phase or planned until 2030. Cellnex operates in Spain, Italy, the Netherlands, France, Switzerland, the United Kingdom, Ireland, Portugal, Austria, Denmark, Sweden and Poland.
Cellnex’s activities are structured around four major domains: telecommunications infrastructure services; audiovisual broadcasting networks; security and emergency services networks; and solutions for the management of smart urban infrastructure and services (Smart Cities and the “Internet of Things” (IoT)).
The company is listed on the Madrid Stock Exchange and is included in the selective IBEX 35 and EuroStoxx 600 indices. It is also included in the FTSE4GOOD and CDP (Carbon Disclosure Project) and “Standard Ethics” sustainability indices.
Cellnex shareholders include GIC, Edizione, ADIA, Canada Pension Plan, CriteriaCaixa, Wellington Management Group, Capital Group, Blackrock, Fidelity and Norges Bank.
For more information: https://www.cellnextelecom.com
(1) 984 Cellnex sites + 3,150 Deutsche Telekom sites + 180 BTS (build-to-suit sites)
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