Spanish telecommunications infrastructure operator Cellnex is reportedly in confidential discussions to divest its majority stake in its Swiss unit to Manulife Financial Corporation’s investment management arm. Cellnex builds, operates, and maintains a vast portfolio of telecom towers and infrastructure across Europe. Manulife Investment Management, the global asset management arm of Manulife Financial Corporation, offers investment solutions to clients worldwide. Two sources familiar with the confidential matter indicated Manulife has engaged financial advisors for a potential deal, though they cautioned that a transaction is not guaranteed.
Cellnex currently holds a 72% interest in its Swiss operations, with the remaining 28% owned by Swiss Life Asset Managers. JPMorgan analysts have previously estimated the entire Swiss unit’s value at around 2 billion euros, equivalent to approximately A$3.1 billion. It remains unclear whether Cellnex is negotiating with other potential buyers or if Swiss Life Asset Managers also plans to divest its holding. Both Cellnex and Manulife declined to comment on the ongoing talks, while Swiss Life Asset Managers did not immediately respond to requests for comment.
These discussions follow a previous attempt last year to sell the Swiss operations, which Cellnex CEO Marco Patuano confirmed were halted due to bids not meeting company expectations. After years of aggressive growth through acquisitions, Cellnex shifted its strategy to focus on asset sales to reduce its substantial debt, a move prompted by rising interest rates. Mr Patuano recently indicated that the necessary asset divestments to streamline the company’s financial position have now been completed. Manulife Investment Management, through its Global Communications Infrastructure vehicle, made its initial foray into the European market last year by acquiring a 50% stake in Tele2 telecom infrastructure assets in Sweden.
