French incumbent telco Orange is reportedly sounding out the market to sell about 9,400 mobile antennas in Spain to cut costs in the country.
Orange has contacted several infrastructure management firms about the kinds of deals they are looking to do,…
French incumbent telco Orange is reportedly sounding out the market to sell about 9,400 mobile antennas in Spain to cut costs in the country.
Orange has contacted several infrastructure management firms about the kinds of deals they are looking to do, with a view to a potential sale, Spanish daily Expansiόn reported without citing sources. Abertis, Axion, TDF, American Tower and Crown Castle were named as potential buyers. If Orange does decide to push ahead with a formal sales process, it would reportedly request proposals after the summer.
While Orange uses about 18,700 antennas in Spain, only about 9,400 (53%) are under its full control, the report stated.
Based on the price Abertis paid for similar Telefonica and Yoigo assets in 2013, the antennas could be worth about €885m (US$1.18bn).
Neither Paris-based Orange nor its Spanish subsidiary was immediately available for comment.
Abertis, a unit of Spanish conglomerate Abertis Infraestructuras, paid €171m (US$233m) for 1,741 Telefonica and Yoigo mobile towers in January 2013, completing the first stage of a deal announced in August 2013. The infrastructure company agreed at the time to buy at least 4,227 mobile towers from the two local operators for €385m (US$510m).
In early July, Orange CEO Stephane Richard named Spain as its focus for acquisition targets, but said the company is also looking at consolidation opportunities in Poland, Romania and Belgium. However, he said no talks were under way at the time.
As Vodafone’s €7.2bn (US$10bn) purchase of cableco Ono was gathering pace earlier this year, the French incumbent was said to have mandated BofA Merrill Lynch to examine potential targets in the country.
Orange was thought to be interested in both triple-play operator Jazztel and TeliaSonera’s budget mobile operator Yoigo.
Jazztel has a market capitalisation of €2.7bn (US$3.7bn), while TeliaSonera previously conducted a sales process for Yoigo but no bidder was willing to match its €1bn (US$1.4bn) valuation.
It has been strongly suggested that Yoigo is once again up for sale after Spain’s number four mobile operator was not included in TeliaSonera’s new “three pillar” plan announced in April.
