Cellnex joins forces with Deutsche Telekom to add 3,150 sites in the Netherlands

Both companies merge their telecommunications tower business in the Netherlands and create an independently managed digital infrastructure investment fund.

Cellnex has reached an agreement with Deutsche Telekom to integrate the 3,150 locations T-Mobile Infra BV's telecommunications company in the Netherlands. At the closing of the operation, Cellnex will operate a total of 4,314 locations in the Netherlands and to play an important role as a telecommunications infrastructure operator in the Netherlands.

Likewise, Cellnex and T-Mobile Netherlands BV will sign a 15-year renewable long-term service contract automatically for periods of 10 years. The agreement also includes the deployment of 180 new sites.

Once the operation is closed and the new deployments have been executed, the estimated additional EBITDA for the Group will reach c.63 million euros (IFRS16), while free and recurring cash flow will grow by c.30 million.

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

The CEO of Cellnex, Tobias Martinez has highlighted how "this transaction exemplifies the strength of Cellnex's partnerships with its 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 player in the Dutch market. At the same time, given that this agreement involves the acquisition of assets by Cellnex in exchange for a minority stake in our Dutch subsidiary, we are presenting to the market a new growth operation that preserves and protects our capacity to tackle more projects by not consuming the group's financial resources.”

Digital infrastructure investment fund

Deutsche Telekom will contribute T-Mobile Infra BV's assets (3,150 sites) and €250 million of debt to Cellnex Netherlands through the newly created DIV Fund (Digital Infrastructure Vehicle 1SCSp). This fund will maintain a 38% stake in Cellnex Netherlands as seed capital.

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

The fund, which will operate independently, is expected to invest in European digital infrastructure assets such as fibre, towers and data centres, with attractive risk-adjusted returns. The fund's investment in Cellnex Netherlands aims to create value by increasing its exposure to growth derived from the adoption of 5G, as well as obtaining synergies as a result of the merger. Cellnex and DIV have signed an agreement by which they may partner in future transactions that may occur in the telecommunications towers and infrastructure sector, in which Cellnex will have the right to co-invest with a 51% participation.