Saudi Telecom Co. agreed to acquire a portfolio of tower assets from United Group as the carrier expands in Europe.
(Bloomberg) — Saudi Telecom Co. agreed to acquire a portfolio of tower assets from United Group as the carrier expands in Europe.
The state-backed firm’s Tawal infrastructure unit is buying a portfolio of 4,800 towers in Bulgaria, Croatia and Slovenia from United Group, according to a statement Thursday. The acquisition, which will be paid in cash, values the portfolio at €1.22 billion ($1.3 billion) on a debt-free and cash-free basis, United Group said in the statement.
Bloomberg News reported earlier Thursday that Saudi Telecom was nearing an agreement to buy the assets from United Group, which is backed by buyout firm BC Partners. Tawal already owns a portfolio of more than 16,000 telecom towers.
Acquisitions of digital infrastructure assets have been heating up in Europe. Deutsche Telekom AG and Vodafone Group Plc both agreed to sell multibillion-dollar stakes in their tower businesses to investment firms last year, while Brookfield Asset Management Ltd. reached a deal this month to acquire data center operator Data4.
United Group plans to use proceeds from the divestment to pay down debt, according to Thursday’s statement. Goldman Sachs Group Inc. advised United Group on the transaction, which is expected to close in the second half of 2023.
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