Renta 4 | According to Bloomberg, the consortium formed by KKR, GIP and Stonepeak would be tabling a more attractive offer for Deutsche Telekom’s towers than that presented by Cellnex and Brookfield. The possibility that Vodafone, via its affiliate Vantage, and even American Tower, have already withdrawn from the process, also appears to be ruled out.
The news report says that Deutsche Telekom’s decision could be revealed before the end of this week. The operation could be one of the biggest this year and is rumoured to be valued at around 20 billion euros.
Valuation:
We continue to believe that the industrial component of what Cellnex is offering to operators is to the Spanish firm’s advantage. We recall that it has a strict criteria on profitability and cash generation when it carries out such operations (a guarantee of value generation for Cellnex shareholders). This could mean that the price offered by one of its competitors could beat Cellnex’s bid. We will need to wait to find out the final decision. We consider that if Cellnex finally does end up with the towers it will be positive for the stock in the long term.
We reiterate our positive view of the stock. Overweight, Target Price 78 euros/share.
