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Klaus Schachinger, uro on sunday
T.in Httges can be happy. The head of Deutsche Telekom has a subsidiary Deutsche Funkturm that is in this country 33,600 cell phone masts at the right time in the shop window. The interest in the purchase of space for mobile antennas by the landlord is high, and the share of T-Share is growing. It has even peaked in 20 years. In mid-June it became known that the American financial investor KKR is now interested in a consortium with two private equity firms Global Infrastructure Partners (GIP) and Stonepeak Partners. The value of Deutsche Funkturm is estimated at up to EUR 20 billion. This is one fifth of Deutsche Telekom’s current market value.
Financial investors are currently ahead of the bidding alliance of Europe’s largest wireless network operator Cellnex and Canadian financial investor Brookfield Global Asset Management, reports Bloomberg. The offer of the private equity syndicate is reportedly much higher than that of the Cellnex alliance.
KKR has extensive experience as an investor in the telecommunications sector. In February, the group sold 40 percent. shares in a subsidiary of Telefnica, Telxius, a subsidiary of Telefnica. In Germany, KKR sold DeutscheOSS in 2020 to the Swedish competitor EQT. And in Italy, KKR is aiming to completely take over the very popular Telecom Italia. In addition, financial investors can afford a high investment. KKR has raised $ 17 billion for its infrastructure fund. GIP is allocating $ 25 billion to its own fund, the largest in the industry.
Cellnex improves the offer
Cellnex is frustrated by the higher offer of private equity competition. As the Spaniards have not yet been present on the large and important German market, it will be difficult for them to take advantage of synergies in the event of a tender. Shareholders are therefore concerned that Cellnex may pay too much for its subsidiary Telekom. Cellnex stocks are under pressure.
To counter the offer of financial investors, the Spaniards are proposing to Telecom a partnership in the mobile mast business through a minority stake in their company of less than ten percent. KKR and the company are also offering Telekom to maintain control of their cell tower business, reports Reuters.
The money from the sale is to be used to reduce debt and accelerate the growth of the share in T-Mobile US from 48.4 to just over 50 percent. A selling price that is as high as possible is useful. The evaluation is “an important but not the only criterion,” says CFO Christian Illek. Through the sale of Chef Httges, he promotes the consolidation of the industry in Europe.
Thanks to the subsidiary T-Mobile US, the DAX group has greater confidence over the entire year in its core business. Americans are realizing synergies faster than expected and have therefore raised their forecasts for operating profit (EBITDA), cash flow and customer growth. In May, Telekom announced over EUR 36.6 billion of Ebit for 2022 instead of the previous 36.5 billion. By comparison, that’s plus five percent. Cash flow, the free flow of funds that is also important for dividends, is expected to increase to “above” instead of the previous “around” ten billion euros this year. Last year, it was 8.8 billion. The decision in the tender for the Deutsche Funkturm is expected to be made ahead of Telekom’s quarterly data on August 11.
The leverage must be between 2 and 20
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