Cellnex Telecom to sell Austrian operations for €803m to consortium

In a significant move within the telecommunications sector, Cellnex Telecom has announced that it will sell its entire Austrian business for €803 million. The buyer is a consortium comprising Vauban Infrastructure Partners, through Core Infrastructure Fund IV SCSp and Core Infrastructure Fund IV SCA SICAV RAIF, EDF Invest (the investment arm of EDF), and MEAG (the asset manager for Munich Re and ERGO).

Cellnex Telecom’s Strategic Move

Cellnex Telecom, which entered the Austrian market in early 2021, acquired its assets from CK Hutchison as part of a broader agreement to purchase CK Hutchison’s infrastructure portfolio across six European countries. Currently, Cellnex manages approximately 4,600 sites in Austria. The sale is part of Cellnex’s strategic “Next Chapter,” aimed at consolidating and simplifying its corporate structure, focusing on growth opportunities in its primary markets.

Rationale Behind the Sale

Marco Patuano, CEO of Cellnex, underscored that this sale aligns with the company’s strategy to streamline operations and concentrate efforts on its core growth markets. He explained, “The sale of our business in Austria is one further step within the company’s ‘Next Chapter’, in line with our strategy, to achieve the goal of consolidating, simplifying our corporate structure and focusing our efforts in the existing growth opportunities in the main markets in which we operate.” Patuano added that this transaction would help Cellnex focus on its balance sheet and shareholder remuneration, fulfilling its market commitments.

Next Steps and Financial Advisors

The transaction is subject to regulatory approvals. Upon completion, Cellnex plans to reassess its capital allocation priorities as part of its ongoing deleveraging process, which was highlighted during its recent Capital Markets Day. Deutsche Bank and Mediobanca are serving as financial advisors for Cellnex, while Clifford Chance and Wolf Theiss are acting as legal counsels.