By Amy-Jo Crowley and Andres Gonzalez LONDON, April 13 (Reuters) - Spain's Cellnex is in talks to sell its stake in its Swiss unit to Toronto-listed Manulife Financial Corporation's investment
Manulife Investment Considers Acquisition of Cellnex Swiss Unit Stake
By Amy-Jo Crowley and Andres Gonzalez
Cellnex's Swiss Unit Stake Sale: Details and Implications
Background of the Potential Deal
LONDON, April 13 (Reuters) - Spain's Cellnex is in talks to sell its stake in its Swiss unit to Toronto-listed Manulife Financial Corporation's investment management unit, according to two sources with knowledge of the situation.
Manulife's Involvement and Previous Sale Attempts
Manulife has been working with financial advisors on a possible deal, one of the sources said. The talks follow an attempt to sell the Swiss operations nL8N3TQ0PF last year, which CEO Marco Patuano told nL6N3ZZ0XV Reuters last month were halted due to bids falling below expectations.
Ownership Structure and Valuation
Current Stakeholders
• Cellnex owns a 72% stake in its Swiss unit, with the remaining 28% held by Swiss Life Asset Managers. Analysts at JPMorgan have valued nL8N3TQ0PF the whole Swiss unit at around 2 billion euros ($2.34 billion).
Uncertainties Surrounding the Deal
• The sources, who requested anonymity as the matter is confidential, cautioned a deal may not happen. Reuters could not determine whether Cellnex was holding talks with other bidders or whether Swiss Life also will sell its stake.
Official Responses
• Cellnex and Manulife declined to comment. Swiss Life Asset Managers did not immediately reply to request for comments.
Strategic Context and Market Impact
Cellnex's Asset Strategy
• Following years of growing through acquisitions, rising interest rates had forced Cellnex to focus nL6N3ZZ0XV on selling assets to reduce debt. More recently Patuano said that the necessary asset sales had been completed.
Manulife's European Expansion
• Last year Global Communications Infrastructure, which is backed by Manulife Investment Management, acquired a 50% stake in Sweden's Tele2 telecom infrastructure assets marking GCI's entrance into the European market.
Financial Information
($1 = 0.8547 euros)
Reporting Credits
(Reporting by Amy-Jo Crowley and Andres Gonzalez in London. Additional reporting by Elvira Pollina and Nivedita Balu. Editing by Anousha Sakoui and Karin Strohecker)
