Cellnex Plans Strong Investments and Growth in Europe

The infrastructure company Cellnex Telecom detailed plans to increase its share capital by €4 billion. The copmpany is seeking to attract new funds as it looks expand its telecoms infrastructure portfolio across Europe.

Board of directors had approved plans to issue 101.4 million new shares priced at €39.45 each, a 25 percent discount on its closing price of €56.14 on 22 July. The company said it will use the funds to build up a war chest to fuel growth via acquisition, revealing it is actively analysing market opportunities for an aggregate amount of up to €11 billion.

Cellnex Telecom’s move would make it Europe’s largest equity offering of 2020, building on growth since the company’s IPO in 2015. The company already announced investments, or commitments to invest, approximately €14.1 billion until 2027 for the acquisition or construction of 50,400 telecoms sites across eight countries, adding to 10,400 sites it already owns.

CEO Tobias Martinez said the company would use the fresh resources to consolidate and expand its position in the eight countries it is present in, as well as look to other European markets. “Beyond agreements closed in 2019 and the first six months of 2020, we continue to analyse growth prospects,“ he said.