Barcelona-based telecoms infrastructure company, Cellnex, has reached an agreement to acquire the European tower business and assets of China's CK Hutchison Holdings, which includes the deployment of around 5,250 new sites and the entry of the Asian group into the company.
Cellnex will acquire 24,600 telecommunication towers and sites currently held by CK Hutchison in Europe for a value of €10 billion, of which €8.6 billion is in cash and €1.4 billion in shares representing around a 5% stake in the company and plans to deploy up to 5,250 sites over the next eight years.
Of the total number of sites to be acquired, 8,900 are in Italy, 6,000 in the United Kingdom, 1,150 in Ireland, 2,650 in Sweden, 1,400 in Denmark and 4,500 in Austria. With these, the company will enter three new markets: Austria, Sweden and Denmark.
According to Cellnex's CEO, Tobias Martinez, "the high density and capillarity of Cellnex's site networks, now in 12 European markets and crossing the 100,000 site threshold, further highlights the differential added value of our company as a natural partner for all mobile operators in Europe to complement their capabilities in 4G and accelerate 5G deployment".
A multi-jurisdictional team from Linklaters comprising Rob Cleaver (corporate partner, London), Owen Clay (partner, London), Jane Cai (managing associate, London), Marly Didizian (partner, London), Rich Jones (managing associate, London), Julian Davies (partner, London) and Aditi Srivastava (managing associate, London), Alejandro Ortiz (partner, Madrid), Chris Yip (partner, Hong Kong), Chris Smale (partner, London) and Elisabet Lundgren (partner, Stockholm), advised CK Hutchinson.
Clifford Chance acted for Cellnex.