Cell multiplication

23 July 2020 By Christopher Thompson Follow @CGAThompson

The acquisitive Spanish mobile mast company is raising 4 bln euros from investors. That will fund another 11 bln euros of potential purchases. With mobile operators selling more towers, competition increasing, and debt cheap, it makes sense for CEO Tobias Martinez to stock up.

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Cellnex Telecom plans to raise up to 4 billion euros in new share capital to finance an expansion of its infrastructure portfolio, Europe's largest operator of mobile phone towers said on July 22.

Such acquisitions could take the form of multi-stage operations to buy new infrastructure valued at up to 11 billion euros, the Spanish company added.

Cellnex will issue 101.4 million ordinary shares with a subscription price of 39.45 euros, a nearly 30% discount to its closing price on July 22 and a one quarter discount to the theoretical ex-rights price.

Cellnex on July 20 raised its 2020 guidance after completing several investments and reported an increase in first-half core earnings, but said it expected net losses in the coming quarters.

The company has bought tens of thousands of phone towers across Europe, controls more than 40,000 sites and is present in eight countries.

- Shares in Cellnex were up 1.6% to 57.06 euros by 0815 GMT on July 23.

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