Telefónica has reached an agreement with Pontegadea for the sale of a 9.99% stake in Telxius, Telefónica’s telecommunication infrastructure arm, for a total of EUR378.8 million (US$439.24 million).  This transaction represents a price of EUR15.2 (US$17.6) per share of Telxius.

Telxius manages over 16,400 telecommunications towers in six countries and an 87,000-kilometre international network of high capacity fiber optic submarine cables. It is the leading market provider in Spain, Germany, Peru and Argentina, and a main provider in Brazil and Chile. Its ten submarine fibre optic cables include two of the highest capacity systems in the world: MAREA and BRUSA. The first is already open for business, and the second will enter into service by the end of 2018. 

The sale has been structured via Telefónica’s subsidiary, Pontel Participaciones, which owns 60% of Telxius’ capital stock. Pontegadea owns 16.65% of Pontel and Telefónica the remaining 83.35%. After the transaction, Telefónica will maintain a majority stake and retain operational control of Telxius. The unit will continue to be consolidated into its accounts.

Additionally, Telefónica, Pontegadea and Pontel have entered into a shareholders’ agreement that regulates the relationship of Telefónica and Pontegadea as shareholders in Pontel, consistent with the shareholders’ agreement among Telefónica, Taurus Bidco S.à.r.l. (KKR) and Telxius.