Mast masters

8 October 2019 By Ed Cropley Follow @edwardcropley

The Spanish firm has snapped up 7,400 British mobile phone towers for 2 bln pounds. At 270,000 pounds per mast the price looks decent compared with other deals. Once Cellnex adds Germany to its map it will have to rely on earnings growth, not acquisitions, to underpin its value.

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Spanish phone tower group Cellnex Telecom said on Oct. 8 it was buying Arqiva’s UK telecoms network division for 2 billion pounds ($2.46 billion).

The transaction, which involves 7,400 sites in the UK and the rights to market another 900, should generate 170 million pounds of adjusted EBITDA in 2020, Cellnex said.

At the same time, Cellnex said it was raising 2.5 billion euros through a rights issue priced at 28.85 euros per share. Shareholders who currently own almost 36% of the company have agreed to take up their shares.

Shares in Cellnex rose as much as 4.9% to a record high of 39.67 euros on the morning of Oct. 8.

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