European private firm Cinven has acquired wholesale fibre network operator Gas Natural Fenosa Telecomunicaciones (GNFT) from Spanish utility Gas Natural for €510m (US$695m).
The telco’s footprint covers Spain and seven Latin American countries where…
European private firm Cinven has acquired wholesale fibre network operator Gas Natural Fenosa Telecomunicaciones (GNFT) from Spanish utility Gas Natural for €510m (US$695m).
The telco’s footprint covers Spain and seven Latin American countries where it offers fibre infrastructure and transmission services to telecom operators by leveraging the infrastructure of utility networks.
Cinven beat off reported interest from rival firms Apollo Global Management, Blackstone, Bridgepoint, Carlyle, and EQT Partners.
Cinven said the telco’s exposure to Latin America and the structural growth in data traffic and fibre networks made it an attractive target.
GNFT has strong and stable cash flow generation in Spain and a consistent organic growth track record, with double digit organic growth with third party customers over 2011 to 2013.
Cinven is being advised by UBS and Barclays on the financing for the transaction, which is yet to be finalised.
KPMG acted as a financial adviser to Cinven, Deloitte advised on tax, and Freshfields was the firm’s legal adviser.
GNFT has more than 30,000km of fibre optics. It also has three satellite platforms in Spain and Panama, more than 4,000 VSAT terminals and more than 1,400 telecommunications nodes. It generates 55% of its revenue in Spain and the remainder in Latin America.
GNFT’s current managing director, Inigo Garcia del Cerro, will continue in the role when the deal closes, which Gas Natural says will be within two months.
Gas Natural is in the process of divesting non-strategic assets. It expects to receive a €250 pretax gain on the sale.
