Telefonica Deutschland announced it has completed the sale of around 10,100 tower and rooftop sites to Telxius for U.S.$1.7B. The assets include 10,000 rooftop sites and up to 80 tower sites, while the active radio technology remains in the hands of Telefonica Deutschland and will continue to be used to operate the mobile network.
As part of the transaction, Telxius will develop a total of 2,400 additional sites for the installation of active radio technology over the next four years and allow a lease-back to Telefónica Deutschland. With this transaction, the company is taking advantage of the currently attractive valuations for constructional network infrastructure and strengthening its financial flexibility.
At the same time, Telefónica Deutschland is securing access to important locations via long-term rental agreements, also for the expansion of the 5G network that will start this year. The transaction ensures that Telefónica Deutschland, according to a release by the company, has gained in Telxius “a competent partner for the further expansion of its network infrastructure.” The transaction is still subject to the approval of the relevant authorities, in particular the German Federal Cartel Office.
“This is one of the largest and most important transactions in the history of Telefónica Deutschland. It represents an important milestone in focusing our business activities. We are pursuing a clear course based on our growth strategy. Within this strategy, we are focusing on further improving the quality of the O2 network for our customers, particularly in terms of area coverage,” said Telefónica Deutschland CEO Markus Haas.
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