MergerMarket
Altice shortlists bidders in mobile phone towers sale - sources
13 APR 2018
Altice [AMS:ATC], the telecommunications group, has shortlisted bidders for its French and Portuguese telecoms towers, said five sources familiar with the situation.
The shortlist includes a mix of infrastructure funds and trade players and due diligence is to begin in the coming days, said the first source familiar.
Spain’s Cellnex [BME:CLNX], a strategic bidder that bid for both sets of assets, is no longer involved in the bidding for the French assets, said the second source familiar.
There is no clarity on which firms are in or out yet, said a person familiar with Cellnex. Even so, the auction appears to be aimed more at funds rather than strategic buyers, said the person. Cellnex dropping out of the French auction would make sense in that context, the person said.
The shortlist includes a mix of infrastructure funds and trade players and due diligence is to begin in the coming days, said the first source familiar.
Spain’s Cellnex [BME:CLNX], a strategic bidder that bid for both sets of assets, is no longer involved in the bidding for the French assets, said the second source familiar.
There is no clarity on which firms are in or out yet, said a person familiar with Cellnex. Even so, the auction appears to be aimed more at funds rather than strategic buyers, said the person. Cellnex dropping out of the French auction would make sense in that context, the person said.
The French assets seemed more targeted at funds, agreed a third source familiar with the situation.
Cellnex is understood to be focused on the Portuguese assets, said a sector expert. Cellnex declined to comment.
In addition to Cellnex, French private equity firm Antin also bid for both sets of assets, as reported.
There are also other French bidders for the French assets, said a fourth source familiar.
American Tower [NYSE:AMT], a strategic bidder, was shortlisted in France, but not in Portugal, the first source said.
Morgan Stanley Infrastructure got shortlisted for the Portuguese assets, said a fifth source familiar with the situation.
KKR Infrastructure, which owns 40% of Telxius; Brookfield [TSE:BAM.A], a shareholder in France’s TDF and AMP Capital, which owns Axion of Spain, were also previously reported to be interested in either asset.
Canada’s PSP Investments is no longer interested, said the third source familiar.
Altice is advised by JP Morgan and Lazard, as reported.
The 10,000 French towers could fetch around EUR 0.2m apiece, pointing to a total valuation of EUR 2bn. The Portuguese and French assets have an EBITDA of EUR 35m and EUR 200m, respectively, as reported.
Altice, PSP, AMP and Morgan Stanley declined to comment. Antin, KKR, Telxius, Brookfield, TDF, and Axion did not reply to request for comment.
Cellnex is understood to be focused on the Portuguese assets, said a sector expert. Cellnex declined to comment.
In addition to Cellnex, French private equity firm Antin also bid for both sets of assets, as reported.
There are also other French bidders for the French assets, said a fourth source familiar.
American Tower [NYSE:AMT], a strategic bidder, was shortlisted in France, but not in Portugal, the first source said.
Morgan Stanley Infrastructure got shortlisted for the Portuguese assets, said a fifth source familiar with the situation.
KKR Infrastructure, which owns 40% of Telxius; Brookfield [TSE:BAM.A], a shareholder in France’s TDF and AMP Capital, which owns Axion of Spain, were also previously reported to be interested in either asset.
Canada’s PSP Investments is no longer interested, said the third source familiar.
Altice is advised by JP Morgan and Lazard, as reported.
The 10,000 French towers could fetch around EUR 0.2m apiece, pointing to a total valuation of EUR 2bn. The Portuguese and French assets have an EBITDA of EUR 35m and EUR 200m, respectively, as reported.
Altice, PSP, AMP and Morgan Stanley declined to comment. Antin, KKR, Telxius, Brookfield, TDF, and Axion did not reply to request for comment.