By Telecompaper
November 14, 2017
Telefonica has announced that private equity firm KKR exercised the previously agreed call option over 38 million shares of its infrastructure subsidiary Telxius (representing 15.2 percent of its share capital) for EUR 484.5 million. As a result of this operation and together with the 24.8 percent stake it acquired last month, KKR will hold 40 percent of Telxius, with Telefonica retaining control.
In a statement to markets watchdog CNMV, Telefonica said the sale was expected to close by the end of this year. It added that the transaction has no impact on its consolidated results as it consists of the sale of a minority interest and that it would use the funds to reduce debt “in a scenario of increasing cash generation.”
Telxius was created just over a year ago and currently owns and currently operates a portfolio of nearly 16,000 telecommunications towers in five countries. It also manages an international network with approximately 65,000 kilometers of submarine fibre optic cables, including around 31,000 kilometers owned by Telxius.
