Sunday, February 5, 2023

Cellnex rises in the stock market amid acquisition rumors

Cellnex climbed in the stock market in this Friday’s session amid rumors of a takeover bid by Giant American Tower and Brookfield Fund. In fact, shares have risen as much as 10%, to 36.98 euros, leading gains in the Ibex 35. Near the end of the session, the titles move more than 9%. American Tower, for its part, fell close to 3% on Wall Street, leading the pre-opening with a slight gain.

Currently, Cellnex has a market capitalization of around EUR 25,000 million. Facing a possible operation, the debt of the group would have to be included, which is approximately 17,000 million, with which, with a hypothetical premium, the transaction would be worth between 45,000 and 50,000 million.

The hypothetical buyer, however, would go on to control the largest European group of telecoms infrastructure with more than 104,000 sites (138,000 when completed pending deployment) distributed among 12 countries.

In any case, the titles are far from the historical maximum, above 60 euros, reached in the summer of 2021. Consequences of investors’ apprehensions about the impact arising from a rise in interest rates

According to what OK Diario has advanced, both groups have hired Morgan Stanley as advisors, while Selnex will have Goldman Sachs as advisor.

Company sources declined to comment. American Tower, listed on Wall Street, has also not issued any official note.

In turn, market sources indicated that Selnex’s board of directors has not received any indication of interest from American Tower or Brookfield, nor has it placed any orders with Goldman Sachs.

Other market sources remind that, under current takeover bid rules, any operation that exceeds 10% of a strategic company’s capital must have the government’s authorisation, which extended the anti-takeover bid royal decree until December 2024. increased.

Telecommunication infrastructure company in a moment of transition following the decision to renew its strategy to focus on organic growth, after more than eight years of intense corporate activity, with more than 25 acquisitions, with an investment of 40,000 million euros Is.

Last week, its CEO Tobias Martinez announced his decision to step down by June. In fact, Selnex is in the process of searching for a successor, one in which it will have the advice of head hunter, Deputy CEO, Alex Mestre is among the possible replacements.

Edizione, the holding company of the Benetton family, is currently the largest shareholder in Cellnex with 8.5% of the capital; Sovereign Wealth Fund of Singapore, for 7% of GIC.

In addition, BlackRock holds 5.07% of the capital for Canada Pension Plan Investment Fund’s 4.97%, Criteria Caixa’s 4.77%, JPMorgan’s 5.38% and investor Chris Hahn’s 7%. Hutchison holds a 4.82% share of a capital increase undertaken by Selnex to finance the purchase of Asian Group’s towers in the United Kingdom.

The hypothetical transaction would face various regulatory hurdles due to the significant overlap between the tower portfolios of the various companies involved. In Spain, for example, the sum of US tower sites, which acquired the towers of Telefónica subsidiary Telexius, and Cellnex, more than 54% of the total market, will exceed 20,200 in 2021.

Nation World News Desk
Nation World News Desk
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