11-02-2016, 12:35 #1
[EN] Telefonica Spins Off Its Network AssetsFebruary 11th, 2016 by Rob Powell
The trend of separating telecommunications operators from their network assets claimed a new pile of infrastructure today. The Spanish-based giant Telefonica has created a new company called Telxius into which it will spin off a selection of global infrastructure assets.
While the precise selection of assets has not been enumerated at this point, the move includes Telefonica's 15,000 towers as well as its 31,000km of submarine cable network. That includes the SAM-1 cable system connecting North and Soutn America among others. Telefonica has a whole lot more than that of course, and the composition of the terrestrial component isn't yet clear. Might they also include data centers as well?
Telxius will provide both Telefonica and also other operators worldwide with network and infrastructure services, although how far up the network stack they will participate at is not yet clear either. The idea is to optimize both company's abiity to grow. Telefonica will be able to focus on its main mobile and fixed network services to consumers and businesses, while Telxius will be able to focus on global infrastructure opportunities. The latter could mean an IPO, it could mean M&A on either side of the table, or it could just lead to a more holistic approach to organic growth. It's hard to tell at this point.
We have seen enough separations of network infrastructure now to call it a trend. In the US, Windstream spun off CS&L as a REIT last year. In Europe, Telecom Italia split off its infrastructure, as did O2 Czech. And in Mexico, America Movil did something similar in response to regulatory pressure. The moves generally reflect, I think, an understanding of the very different mindsets required for infrastructure investment and retail service delivery.
Telxius will be headed by Alberto Horcajo, currently CFO of Telefonica Brasil.
11-02-2016, 12:49 #2
Telefonica Weighs Initial Public Offering for Tower, Cable UnitRodrigo Orihuela
February 11, 2016
- Share sale is among alternatives being considered for Telxius
- Carrier carving out infrastructure unit as it reduces debt
Telefonica SA, Europe’s second-largest phone company, is considering an initial public offering of its newly created tower and submarine-cable unit Telxius.
Telefonica is “analyzing different strategic alternatives, among which is a possible initial public offering," the carrier said in a regulatory filing Thursday. The Madrid-based phone operator announced the creation of Telxius Wednesday and said it will initially consist of about 15,000 phone towers and an international submarine-cable network covering 31,000 kilometers (19,000 miles), with more assets being included gradually over the next few months.
Telefonica is seeking to raise cash and reduce debt, and a spinoff of tower assets would follow similar moves by America Movil SAB and Telecom Italia SpA. Telefonica is seeking to cut debt as weak currencies in Latin America weigh on earnings. Last month, the company announced a 2.9 billion euro ($3.3 billion) early-retirement plan to cut employment costs.
Telefonica’s towers outside Germany total about 46,000 units and could have an enterprise value of about 8.5 billion euros to 9.5 billion euros, excluding assets such as cables, Barclays Plc analysts led by Mathieu Robilliard estimated in a Nov. 26 note to clients.
Telefonica said it created Telxius to improve profitability and be able to participate more actively in growth opportunities, which could include buying assets. Alberto Horcajo, who was previously chief financial officer of Telefonica’s Brazilian unit, will run Telxius.
Alberto Horcajo has been named CEO of the company. Telxius is aimed at optimising the operator's asset portfolio and improving the return on capital. Telefonica said it may also consider incorporating third-party assets in the company.
Telefonica's international fibre network connects more than 40 countries in Europe and the Americas. This is an international Tier-1 network which carries more than 4.5 Tbps of traffic and provides telecommunications services both to Telefonica Group and other operators and service providers. Over the coming months, a number of newly created companies, including the aforementioned assets, will be gradually integrated into Telxius, the company said.
Última edição por 5ms; 11-02-2016 às 12:55.