Madrid – WEBWIRE – Wednesday, June 2, 2021
- The transaction obtains on time desk all relevant regulatory approvals in Spain and Germany.
- The closing of the transaction in Europe and this present day?s originate of the joint enterprise in the UK strengthen the execution of the strategic realizing offered by Telefónica in 2019.
Telefónica announced the completion of the sale of Telxius? European tower division to American Tower Corporation (ATC), following regulatory approvals in Spain and Germany.
Telxius has purchased a price of roughly ?6.2 billion for the tower division in Europe. In August, ATC is moreover anticipated to develop the towers that Telxius committed to develop on that date, in execution of the 2nd half of the agreement between Telxius and Telefónica Germany.
This successful transaction demonstrates Telefónica?s ability to face the challenges posed by the original actuality, demonstrating anticipation and agility, as effectively as Telefónica Infra?s ability for execution, in the context of the company?s original strategic realizing. To boot to concluding the sale of Telxius towers in Europe, Telefónica Infra has moreover launched, in the previous couple of months, wholesale autos for the deployment of fibre in Germany -already operational-, and Brazil. In this scheme, the company is making growth in its goal of capturing original opportunities to salvage value from infrastructure resources, bettering the aggressive drawl of Telefónica?s industry items and capturing value from these same resources by co-investments.
This day?s towers transaction will in the discount of the company?s accumulate debt by approximately ?3.4 billion, whereas the transaction scheduled for subsequent August will end result in an additional debt discount of roughly ?0.7 billion.
UK market leader
The completion of the sale of Telxius towers in Europe on Tuesday coincides with one more crucial milestone for Telefónica, the starting up of the mixed O2, the UK?s greatest and most admired cell platform, and Virgin Media, the UK?s fastest broadband community. This marks the originate of the strongest mounted and cell competitor in the UK market, for the improbable thing about buyers, companies and the overall public sector.
The original company turns into without a doubt one of the greatest in the UK, with 47 million broadband, cell, TV and dwelling phone, and affords connectivity companies, capabilities and digital choices to tens of hundreds of UK companies and public sector organisations.
The joint enterprise is anticipated to generate huge synergies for Telefónica, with a accumulate present value of £6.2 billion, and change into an constructed-in nationwide communications supplier with £11 billion in revenues. The transaction will end result in a debt discount of roughly ?5 billion.
Strategic realizing execution
The transactions closed this present day, which took drawl in pandemic times, display the stage of execution of the approach announced by Telefónica in November 2019. The two operations are half of the Telefónica Community?s approach, inquisitive regarding the active administration of its companies and resources, according to value creation and, on the equal time, accelerating the natural discount of debt.
Money generated from both transactions, on the side of the inorganic operations still to be closed, will in the discount of the Community?s accumulate debt by approximately ?9 billion.
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