KKR acquires 49% stake in Spain's Reintel

News Broadband Spain 17 DEC 2021
KKR acquires 49% stake in Spain's Reintel

Spain’s national grid operator Red Electrica said it has agreed to sell a 49 percent stake in its fibre-optic unit Reintel to US investment fund KKR for EUR 971 million, confirming earlier reports. The subsidiary is the country’s largest dark fibre provider, with over 50,000 km of fibre-optic cable running along electricity grids and rail lines.

Reintel generated EUR 104 million in earnings before interest, taxes, depreciation and amortisation in 2021, meaning the stake was valued at 22.1 times the EBITDA, said Red Electrica, adding that the transaction is part of its 2021-25 strategy to raise funds to power the country’s grid via more renewable sources. The deal with KKR “ensures that from now on we have a highly prestigious strategic partner with a vocation of permanence,” said Red Electrica CEO Roberto Garcia Merino.

Earlier this year, business daily Expansion reported that Red Electrica was also seeking a buyer for satellite operator Hispasat, which it acquired from Abertis for a total of EUR 933 million back in 2019.

KKR already owns Spain’s fourth largest operator Masmovil together with buyout funds Cinven and Providence, and is also attempting to acquire Telecom Italia (TIM) after making an unsolicited bid for Dutch incumbent KPN earlier this year.

Categories:

Fixed

Companies:

Hispasat,  KKR,  Reintel

Countries:

Spain

Tags:

Fibre, Internet Access, Wholesale, M&A buyouts & divestments

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