Dark fibre provider Metroweb has been sold to infrastructure fund F2i and PE firm IMI Investimenti for an enterprise value of E436m. The figure represents more than 10 times the company’s EBITDA for 2010. The buyers have secured a financing with a group…
Dark fibre provider Metroweb has been sold to infrastructure fund F2i and PE firm IMI Investimenti for an enterprise value of E436m. The figure represents more than 10 times the company’s EBITDA for 2010. The buyers have secured a financing with a group of MLAs: Mediobanca, Banca Intesa, Centrobanca, Santander and Societe Generale. These banks have provided a E230m five-year debt package comprising a E210 term loan and E20m RCF, TelecomFinance understands.
The hybrid transaction has been described as more of an infrastructure deal than an LBO, because of its conditions and since shareholders will get some dividends. The sellers are Milanese utility group A2A and UK private equity firm Stirling Square Capital Partners, which respectively held stakes of 23.5 per cent and 76.5 per cent.
A2A stated that it would retain a convertible bond loan, which, if exercised, would allow it to keep a 25 per cent stake in Metroweb plus the option to sell by November 30 2013 under the same conditions of today’s transaction plus a dividend. A2A said it would reap around E53m from the transaction, plus capital gains of around E38m. TelecomFinance previously reported that F2I/Intesa Sanpaolo, Axa, Antin and Vodafone/ Clessidra had submitted binding bids valued at E430-450m. Metroweb is advised by Lazard.
TI said its Latin American strategy will continue to focus on growing existing operations in Brazil and Argentina, rather than entering new markets.
Just maintaining its presence in the region already requires a lot of investment in infrastructure, CEO Franco Bernabe said in mid-May.
In Brazil, he said the company’s TIM mobile operator plans to invest fixed-line through fibre optic unit Intelig to meet increasing wireless demand. In Argentina, TI plans to invest US$2.5bn over three years in Telecom Argentina, in which it holds 68 per cent control.
Telefonica, Portugal Telecom and Vivendi are also betting on growth in their Latin American businesses. TI used to own assets in Chile, Peru, Bolivia and Cuba, but sold these off over the past decade.
