KKR and Global Infrastructure Partners are to buy the Frankfurt-listed towers unit of UK telecom giant Vodafone, suggesting PE’s appetite for European telecom assets remains strong despite a weak economic backdrop.
PitchBook data shows private equity’s share of European telecom deal flow has been growing, with PE buyers making up 72% of deal value in the space so far this year as PE buyouts total €10.2 billion.
Investments in this sector are seen as relatively inflation-resistant, as mobile operators can peg their rates to rising costs, passing the increase on to their customers. Funds also still have plenty of dry powder to deploy, in contrast to strategic buyers with less capital to deploy amid public market volatility.
KKR and GIP had been competing against several other financial and strategic bidders for Vodafone’s Vantage Towers unit. This included a consortium of Spain’s Cellnex Telecom and Singapore’s sovereign wealth fund GIC.
Another deal currently in play is EQT‘s bid for Brookfield‘s 45% stake in French telecom tower owner TDF. However, the largest deal this year was Apax Partners and Warburg Pincus’ carveout of T-Mobile Netherlands for €5.1 billion, with the second biggest being Ardian‘s purchase of Spanish company Adamo Telecom from EQT for €1 billion.
Featured image by DG Garci Freelance/Shutterstock
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