Cellnex Explores Going Private or Merging After Share Price Drops
Cellnex Considers Strategic Options Amid Market Challenges
July 23 (Reuters) - Mobile phone tower group Cellnex is studying strategic options including taking the company private or a merger with a competitor, Bloomberg News reported on Thursday.
Spain-based Cellnex's market capitalisation has more than halved since its peak of about 40 billion euros ($45.54 billion) in 2021, as investors worried about its debt levels and potential consolidation among its customers.
Share Price Reaction
The company's shares jumped over 5% after Bloomberg News report.
Cellnex was not immediately available for comment.
Past Merger Talks and Investor Interest
Discussions with DigitalBridge and Deutsche Telekom
In the past year, Cellnex management held early talks with an investor group backed by DigitalBridge Group Inc and Deutsche Telekom AG about the possibility of a deal, the report said, citing people familiar with the matter.
Potential Tie-Up with GD Towers
The consortium was considering the idea of a tie-up that would see Cellnex combine with Deutsche Telekom’s infrastructure affiliate GD Towers but the discussions did not progress past the initial stage, it added.
DigitalBridge Group and Deutsche Telekom could not immediately be reached for comment.
Financial Context
($1 = 0.8784 euros)
(Reporting by Hyunsu Yim in Barcelona; Editing by Mark Porter)
