Discussions on a possible sale are still ongoing, say those familiar with the matter.
(Photo: imago/Jan Huebner)
KKR & Co Inc., Global Infrastructure Partners and Stonepeak Partners have jointly submitted a binding offer for a majority stake in Deutsche Telekom AG’s €20 billion cell phone tower business, people familiar with the matter have reported.
They are competing with a consortium of Canadian investment firm Brookfield Asset Management Inc. and Spain’s Cellnex Telecom SA, which have made a confirmatory bid for part of Deutsche Telekom’s business, according to the people, who asked not to be named.
Deliberations are still ongoing and other bidders may emerge, the people said. Vodafone Group Plc’s listed infrastructure arm, Vantage Towers AG, is interested in Deutsche Telekom’s towers and may bid alone or with a partner, one of the people said. The investment company DigitalBridge Group Inc. has also examined the business area, as Bloomberg News reported in May.
Representatives from Brookfield, Cellnex, Deutsche Telekom, Stonepeak and Vantage declined to comment. Spokespersons for KKR and GIP did not immediately respond to requests for comment.
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For Europe’s telephone companies, ownership of these network infrastructures was once an important part of their business model. Under pressure to raise cash and reduce the cost of new network investments, they have begun spinning off their cell towers into separate entities or selling them off altogether.
Private equity firms are attracted to telecom infrastructure because of its ability to generate steady, long-term returns. KKR has raised $17 billion for its latest global infrastructure fund this year, while GIP is targeting $25 billion for the world’s largest infrastructure investment capital pool.
Cellnex, Europe’s largest mast operator, already jointly owns masts in Switzerland and the Netherlands with Deutsche Telekom. Germany is the only major European market where Cellnex has not yet established a presence.
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