Cellnex allied with Deutsche Telekom to incorporate 3,150 locations in the Netherlands

Both companies fuse their activity of telecommunications towers in the Netherlands and create an investment fund in digital infrastructure of independent management.

Cellnex has reached an agreement with Deutsche Telekom to integrate the 3,150 locations T-Mobile Infra BV’s telecommunications in the Netherlands. At the close of the operation, Cellnex A total of 4,314 locations will be operated in Holland and to perform an important role as a telecommunications infrastructure operator in the Netherlands.

Also Cellnex and T-Mobile Netherlands BV will sign a long -term renewable services contract automatically for periods of 10 years. The agreement also includes the deployment of 180 new locations.

Once the operation is closed and the new deployments, the additional Ebitda estimated for the group will reach the c.63 million euros (IFRS16), while the free and recurring cash flow will grow in C.30 million.

Cellnex operates in the Netherlands since 2016, the year in which he carried out the acquisitions of Protelindo and Shere Group. In 2017 it acquired Alticom. It currently manages a 984 site portfolio in the country with an associated investment of C.492 million euros.

The Ceo de Cellnex, Tobias Martinez He has stressed as “this transaction exemplifies the strength of Cellnex's partnerships with their clients. As we did in Switzerland with Sunrise, we have sealed an alliance with Deutsche Telekom in the Netherlands that allows us to consolidate our position as a key actor in the Dutch market. At the same time, given that this agreement implies the acquisition of assets by Cellnex in exchange for a minority In our Dutch subsidiary, we are presenting to the market a new growth operation that preserves and protects our ability to address more projects by not consuming financial resources of the group. ”

Investment Fund in Digital Infrastructure

Deutsche Telekom will contribute the assets of T-Mobile Infra BV’s (3,150 locations) and 250 million euros of debt to Cellnex Netherlands through the newly created Div Fund Fund (Digital Infrastructure Vehicle 1SCSP). This fund will maintain a 38% participation in Cellnex Netherlands as a seed capital (Seed Asset).

As part of the transaction, Cellnex has compromised 200 million of euros in the fund (div), which are added to the around 400 million euros of compromised capital by Deutsche Telekom in the form of asset contribution.

The fund is expected to operate independently, invest in European assets of digital infrastructure such as fiber, towers and data centers, with attractive returns adjusted to risk. Fund's investment in Cellnex Netherlands Its objective is to create value by increasing its exposure to growth derived from the adoption of 5G, as well as obtaining synergies as a result of fusion. Cellnex and Div have signed an agreement by which they can be associated in future transactions that could occur in the telecommunications towers and infrastructure sector, in which Cellnex will have the right to co-invert with a 51%participation.