Telefonica has reportedly launched a process to spin off its Spanish towers and cables into a new entity which it plans to list or partly sell in H1 2016. Towerco Cellnex has been named as a potential suitor for both the Telefonica towers and Telecom Italia’s tower spinoff Inwit.
Telefonica (BME:TEF) has reportedly launched a process to spin off its Spanish towers and cables into a new entity which it plans to list or partly sell in H1 2016.
The Madrid-based telco aims to execute its plans quickly and the new entity will be registered “very shortly”, Reuters cited a source familiar saying.
The spun-off entity could be worth up to €6bn (US$6.53bn), the report stated.
Telefonica was not immediately available for comment.
Last December, the telco declined comment on a report that it had hired tower specialist advisory firm TAP Advisors to assist it on a spin-off or sale of its towers in Spain, Germany and Latin America.
Telefonica CFO Ángel Vilá (pictured) said the previous month that the company would consider listing its Mexican business, which faces increasing competition from AT&T.
In 2015, Telecom Italia listed 40% of its towerco spin-off, Inwit, while American Tower spun off and listed its Mexican tower business Telesites.
Spanish towerco Cellnex, spun off by Abertis earlier in 2015, has been named as a potential buyer of both Inwit and Telefonica’s Spanish towers.
