CK Hutchison is looking to sell off its large group of mobile towers in Europe to Cellnex. The Cellnex which is the Spanish telecom infrastructure company will also solely own the Three mobile brand if the deal is finalized in €10bn.
CK Hutchison owns the approximately 29,000 sites across Europe and the company early said that the company is looking for other business options. CK Hutchison issued a statement of Wednesday saying that he is in talks with Cellnex on a service agreement with the Spanish company to accelerate the roll-out of 5G networks.
Cellnex raised €4bn for investment, via issuing new shares in July and Cellnex was a potential candidate for the purchase of the CK Hutchison mobile towers.
CK Hutchison divided its businesses into two groups, separating its towers infrastructure from its score telecom business which also increased the valuation of its core telecom business. The deal will accelerate more mergers in telecom sectors in near future. Back in 2016, CK Hutchison tried to buy O2 but it was not successful due to come complications in the joint ventures
Other companies also have sold their towers due to high-risk levels of debts such as KKR, and Vodafone also following the footsteps of other companies.
Cellnex share price increased after the report was confirmed and the company reported strong results for the first nine months of the year. Cellnex revenue increased by 53 percent. pre-tax losses also increased from €166m to €228m. earning increased by 68 per cent.
The Spanish company already bought towers in Portugal, Poland and the UK for €7bn. The company now owns 61,000 sites and has a market capitalization of almost €28bn.