Arqiva Reaches Agreement to Sell its Telecoms division to Cellnex for £2.0 bn
London, UK, October 8, 2019--Arqiva Group Limited, the leading UK communications infrastructure company, today announces that it has reached an agreement with Cellnex for the sale of its telecoms infrastructure and related assets at an enterprise value of £2.0bn.
The transaction comprises c.7,400 of Arqiva’s cellular sites, including masts and towers as well as urban rooftop sites, and the right to market a further c.900 sites across the UK.
Cellnex is a significant pan-European tower operator with sites in the UK, Ireland, Spain, Italy, France, Switzerland and the Netherlands. The acquisition continues Cellnex’s investment in the UK and follows their previously announced long-term strategic agreement with BT in June 2019, whereby Cellnex obtained the rights to operate and market 220 high towers located throughout the UK.
The Arqiva telecoms division serves all four UK mobile network operators individually, as well as holding contracts with the two joint ventures they operate between them (Cornerstone (CTIL) and MBNL). Arqiva’s towers operate on a neutral host basis.
Arqiva’s remaining broadcast infrastructure business sits at the heart of digital broadcasting in the UK. It leads in the provision of end-to-end network solutions for TV and radio customers, international content owners and data network providers, with around 1,500 broadcast transmission sites in the UK and five award-winning teleports. It also retains its interests in machine-to-machine data services which provide highly secure smart meter networks for the utilities sector.
The majority of the sale proceeds will be used to pay down debt in Arqiva’s capital structure, securing the long-term sustainability and financial security of the UK’s broadcast infrastructure.
The transaction has been approved by the boards of Arqiva and Cellnex and is expected to close during H2 2020, subject to clearance from the regulatory authorities.
Lazard is acting as sole financial advisor to Arqiva in connection with the transaction.
