Cellnex, With An Investment Capacity Of € 2.5 bn, Buys El Corte Inglés’ Antenna Business For €70M

Cellnex buys El Corte Inglés' antenna business for € 70MCellnex will continue consolidating its leading position in Europe

Cellnex has reached an agreement with El Corte Inglés to acquire the exploitation rights for over 400 phone antennas installed by the Spanish distribution group on the roofs of more than a 100 of its centres.

The final price is close to 70 million euros, which could be increased if certain financial objectives are met.

Bankinter analysts flag that the operation will have a positive impact on Cellnex’s share price, although this will be moderate given that the deal is a small one. It will also allow Cellnex to continue consolidating its leading position in Europe, where it already manages more than 58,000 telecom towers.

The financial daily Cinco Días reported on Monday, citing sources familiar with the operation, that the antennas which El Corte Inglés is now divesting are operated by the country’s main mobile operators, Telefónica, Vodafone, Orange and MásMóvil. The revenue generated by the antennas comes from the fee these operators pay for the transfer of space.

At the same time, the agreement between the two parties not only includes the transfer of the antennas, but Cellnex will also be responsible for developing the 5G network for El Corte Ingles’ department stores. This will save the Spanish distribution firm from investing in this process.

Cellnex will continue to buy assets in the coming months. With an investment capacity of more than 2.5 billion euros, its strategy is to continue gaining critical mass to improve its negotiation capacity with telecommunications operators. To complete its offer for these operators, it could also diversify towards fiber optics.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.