Cellnex most likely candidate to buy Deutsche Telekom’s towers (51%; DT would hold on to a minority stake of 49%)


Norbolsa | The process for the sale of Deutsche Telekom (DT)’s towers was updated ahead of the possibility that Vantage Towers and AMT are excluded before they lodge their bids.

The reason behand the recent news has to do with the significant regulatory challenges which both companies would have to face consolidating the towers in the German market. DT owns approximately 50% of the total of towers in Germany, while Vantage and AMT have 30% and 21% respectively.

Everything points to Cellnex (CLNX) being the most likely candidate. It would present a joint offer with Brookfield (it is suggested that Cellnex would acquire 51%, while DT would maintain a minority stake of 49% (not listed).

Opinión: Positive news for Cellnex as it eliminates the risk of “overpaying” for the towers which was the fear up to now. Whatsmore, the company’s balance sheet (approximately 9 billion euros). would have sufficient margin to take on the purchase of 51%. If the deal goes ahead, it would mean entering the German market led by the top operator that is DT.