Telefónica Deutschland sells wireless towers to Telxius to expand scope for investments
Telefónica Deutschland sold almost all of its wireless masts to take advantage of currently attractive valuations for infrastructure assets. The proceeds increase the company’s financial flexibility for investments in network quality and new growth areas.
The company sold approximately 2,350 steel and concrete masts to the Telefónica S.A. telecommunications infrastructure subsidiary Telxius for a cash purchase price of 587 million euros. The corresponding purchase contract was signed yesterday, following the approval of the transaction by Telefónica Deutschland’s Supervisory and Management Boards. The deal does not include the transmission equipment mounted on the towers.
Increased financial flexibility: Network and innovation to benefit
With this transaction, Telefónica Deutschland takes advantage of favourable market conditions to free resources for its core business and thereby generate additional value for customers and shareholders. At the same time, the company will be able to continue using the wireless towers through operating lease agreements. The proceeds enhance Telefónica Deutschland’s financial flexibility. On the one hand, the funds will help to further improve network coverage and speed. On the other hand, they will support the creation of new business areas such as Advanced Data Analytics and Internet of Things. The sale concerns wireless masts located mainly in rural areas. They account for less than ten percent of the number of wireless sites which Telefónica Deutschland aims to use after the merger with E-Plus is completed. There are currently no plans for the disposal of the remaining passive infrastructure, which consists mainly of rooftop sites.