The rumor has been confirmed. Cellnex has announced a capital increase of 4 billion euros, 18.5% of its current market cap, which will put into circulation 101.4 million shares, which means 26.3% of the current shares at an issue price of 39.45 euros. The purpose of the capital hike is to finance the group’s expansion via acquisitions. According to the company’s press release, it is looking at assets worth up to 11 billion euros to invest in within the next 18 months.
Cellnex’s stock market listing in 2015 was the first in a series of moves (Inwit’s share offer, the sale of Telefonica’s stake in Telxius, etc) towards the creation of a listed telecommunications’ infrastructure sector, focusing on the mobile broad band segment.
Cellnex signs up for two new projects in France worth €854 mn, in line with its strategy for boosting its international expansion. It will now become the second biggest independent towers operator in France.
Cellnex Telecom is the leading independent operator of wireless telecommunications’ infrastructure in Europe. It is a growth investment opportunity, but it is currently trading at too demanding multiples. We would recommend to wait for some dips in the stock market to start to build up a position with a medium-long term view.