Telefónica to sell German towers to Telxius for €1.5bn

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Telefónica is reportedly in talks to sell 10,000 of its tower sites in Germany to Telxius for an estimated €1.5 billion.

According to Spanish newspaper Expansión, Telefónica’s subsidiary  O2 Deutschland has reached the advanced stages of its negotiations with Telxius to sell its 10,000 radio sites.

Though no official word has been given, the news follows the company’s new 5-point plan that announced back in November, which included the formation of Telefónica Infra, a new unit that combine all of Telefónica’s infrastructure assets.

Telxius, which Telefónica holds a 50.01% stake, will become the first asset of this new unit and in addition Telefónica Infra will develop towers, distributed antenna systems, data centres (including Edge), greenfield fibre projects and subsea cables, to name a few.

According to sources close to the matter, O2 Deutschland and Telxius are reportedly weeks away from closing this deal.

Should the transaction go ahead, sources say it will increase the number of sites managed by Telxius by 50% which currently stands at 20,257.

The deal is also set to include terms that allow Telxius' to build new sites in Germany that it will rent to O2 Deutschland  over the coming years. O2 Deutschland must also rapidly scale its tower footprint to meet its existing obligations the German government.

Capacity contacted both Telefónica and Telxius for commen. At the time of publication Telxius declined to comment and Telefónica has yet to respond.