Tower company Cellnex struck a deal with Iliad to acquire 60 per cent of a company that will manage 7,000 tower sites of Polish operator Play, a move Iliad stated will boost the operator’s network rollout.
In a statement, Cellnex detailed it will pay €804 million to Play for the stake, which will bolster the Play’s coffers for 4G and 5G rollouts and a planned entry into the fixed market.
The remaining 40 per cent will be held by Iliad which last month launched intentions to acquire Play for €3.5 billion.
Cellnex stated the new Polish telecommunications tower company could invest up to €1.3 billion over the next 10 years to build 5,000 sites in order to meet growing connectivity needs in Poland. Around 1,500 will be built in partnership with Cellnex over the next 10 years at the cost of €400 million.
The agreement between Cellnex and Iliad is dependent on regulatory approval of the latter’s acquisition of Play. If successful, the deal is expected to close during the first half of 2021.
Tobias Martinez, Cellnex chief said the agreement marks the moment when Cellnex enters the Polish market, labelling it as “one of the most important countries and economies in Eastern Europe”.
“With nearly 40 million inhabitants and a GDP which, in relative terms, is performing better than that of the EU as a whole”.
“This arrangement will also enable us to position ourselves as a leading player in the Polish telecommunications sector”, he added.