September 20, 2024 09:32 GMT
CREDIT SUPPLY: Sources Report Cellnex Exploring French Asset Sale
CREDIT SUPPLY
BBB-/BBB- EUR Spreads Mixed & Muted
Don’t recall seeing plans for a French asset sale though this fits with their recent disposal strategy. Use of proceeds is unclear, prior disposals have been for the purpose of deleveraging but the recent Austrian deal represents a departure from this.
- Reuters sources report that Cellnex is exploring the sale of its French data centre unit, potentially valued at “a few hundred million euros”, to focus on its core tower business (80% of revenue).
- France contributed EUR 0.4bn (~20% of revenue) to Cellnex in H124, making it the company’s largest market by revenue.
- Earlier this year, Cellnex sold its Austrian business for EUR 0.8bn (proceeds to be used for payouts) and its Irish unit for EUR 1bn (delayed for now by regulatory review) as part of a strategy shift from acquisitions to strengthening finances.
- For context on deal size, net debt stands at EUR 20.6bn (6.8x leverage vs. 5-6x target) and the company is guiding for EBITDA of EUR 3.15-3.25bn.
Keep reading...Show less
161 words