Abertis to raise up to €1.79 billion for Cellnex IPO
Abertis plans to raise up to €1.79 billion through the IPO of 55% of its Cellnex Telecom unit.
The company is set to sell 127.5 million Cellnex shares to institutional investors between €12 and €14 each, valuing the infrastructure arm at up to €3.42 billion. Cellnex is scheduled to begin trading in the Spanish stock market on May 7 2015.
The news follows earlier reports that Abertis was allegedly spinning off Cellnex Telecom, as part of its strategy for growth.
According to Abertis, the IPO will enable Cellnex Telecom to seize international exposure and growth opportunities, primarily in European markets, and to develop greater efficiency in managing the infrastructure “stock” for large mobile operators.
“With very favourable market conditions for telecommunications infrastructure operators, the IPO for Cellnex Telecom will help drive growth and consolidate its position of leadership in Europe. Abertis will retain a significant stake as a stakeholder after the IPO as we believe in the long-term success of the company,” said Francisco Reynes, chairman of Cellnex Telecom and CEO of Abertis.
In 2014, Cellnex reported revenue of €436 million and earnings before interest, taxes, depreciation and amortisation of interest, taxes, depreciation and amortisation of €178 million. In March 2015, Cellnex completed its €693 million acquisition of Galata, the mobile tower unit of Italian operator Wind.