Deutsche Telekom to sell 51% of towers business


  • Shock bid from Brookfield and DigitalBridge
  • Bid values total of GD Towers device at 17.5 bln euros

LONDON/BERLIN, July 14 (Reuters) – Deutsche Telekom (DTEGn.DE) has agreed to promote 51% of its towers enterprise to a consortium of Canada’s Brookfield and U.S. personal fairness agency DigitalBridge following they made a shock very last-minute bid that valued the unit at 17.5 billion euros ($17.5 billion).

Brookfield (BAMa.TO) experienced initially helped to fund a binding bid by Spanish telecoms agency Cellnex (CLNX.MC), right before Cellnex withdrew on Wednesday. browse far more

The German telecoms giant will retain the remaining 49% stake of the GD Towers business enterprise, with the deal anticipated to close towards the finish of the yr.

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Proceeds of 10.7 billion euros will support Deutsche Telekom reduce debt, while it performs in the direction of getting a vast majority share in its T-Mobile U.S. subsidiary.

“We crystalise the benefit of our tower property, thus developing price for our shareholders,” Deutsche Telekom CEO Tim Höttges explained.

Brookfield and DigitalBridge (DBRG.N) “have deep pockets for the coming steps,” Höttges added, indicating their function in fostering market consolidation for the duration of a media briefing.

Deutsche Telekom shares have been down 1.6% at 1102 GMT.

The offer is Germany’s most significant this year and Europe’s 2nd biggest, right after the Benetton family members and U.S. fund Blackstone’s (BX.N) 58 billion euro takeover of Italian infrastructure team Atlantia (ATL.MI). examine much more

The towers sale kicked off in March, drawing focus from heavyweight economic traders including U.S. buyout fund KKR (KKR.N) which teamed up with World wide Infrastructure Companions (GIP) and Stonepeak on a rival bid. read through much more

Lots of telecoms corporations have carved out towers corporations, or released joint ventures with other companies, to increase income although retaining a stake in functions.

Goldman Sachs recommended Deutsche Telekom on the sale, even though Perella Weinberg Associates, Evercore and Barclays worked with DigitalBridge together with regulation firms Allen & Overy and Morgan Lewis.

With about 800 personnel, GD Towers operates radio towers at additional than 40,000 spots in Germany and Austria. In 2021, the firm achieved gross sales of all around 1.1 billion euros.

Vodafone’s Frankfurt-stated towers business enterprise Vantage Towers (VTWRn.DE) and American Tower (AMT.N) experienced thought of bids previously in the auction method. read far more

“The partnership remaining formed these days is about building the subsequent generation electronic infrastructure champion of Europe,” said DigitalBridge CEO Marc Ganzi.

The infrastructure expense firm manages $47 billion of assets concentrated on electronic infrastructure these kinds of as wireless towers, data centers and fiber networks.

($1 = .9981 euros)

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Reporting by Emma-Victoria Farr in London and Matthias Inverardi in Duesseldorf
Writing by Rachel Much more in Berlin Enhancing by Jacqueline Wong and Mark Potter

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