Telefónica has reached an agreement with leading global investment firm KKR Group for the sale of up to 40% of Telxius Telecom, its global telecommunications infrastructure company, for a total amount of 1,275 million euros.
Under the agreement, which is subject to regulatory approvals, Telefónica and KKR will partner together to develop and grow one of the leading global operators of telecom infrastructure including the development of planned new infrastructures.
Telxius owns and operates a large 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, of which around 31,000 kilometers are owned by Telxius. Both business units benefit from attractive growth in their core markets, as the use of mobile data and the demand for reliable internet connectivity continue to grow rapidly, particularly in Spain and Latin America.
Following the deal, Telefonica will remain the anchor client for Telxius’ tower and cable businesses. It will keep a majority stake and operational control of Telxius and continue to consolidate it into its accounts. The sale is part of Telefonica’s strategy to optimize its asset portfolio and allocation of capital, and complements its plan for organic debt reduction.