Cellnex Agrees to Buy Portugal's OMTEL | Calamatta Cuschieri

Market summary

On the first trading day in 2020, Maltese market closed in the red, with the MSE Equity Total Return Index ending the session 0.910% lower, to 9,528.184 points. Best performer was Malta Properties Company plc, it jumped 3.17% to close at 0.65. Followed by Mapfre Middlesea plc and RS2 Software plc. Both added 0.93% to close at 2.18 and 2.16 respectively. Biggest fall of 7.69% was seen from HSBC Bank Malta plc with closing price of 1.20, followed by International Hotel Investment plc and Bank of Valletta plc, which dropped 2.41% and 0.47% to close at 0.81 and 1.055 respectively.

On the European market investors were seeking out safe havens at the end of the week following a US military strike against the top Iranian commander, a reminder to investors of the plethora of geopolitical risks that were lurking on the horizon in 2020. By the end of trading, the benchmark Stoxx 600 was down by 0.33% to 418.33, the German Dax was 1.25% weaker to 13,219.14 and the Ibex 35 dropped 0.46% to 9,646.6. France's Cac-40 on the other hand managed to reverse early losses and add 0.04% to 6,044.16.

US stocks recorded some heavy losses on Friday after the White House confirmed that an airstrike had killed a top Iranian commander, with Tehran vowing to retaliate. At the close, the Dow Jones Industrial Average was down 0.81% at 28,634.88, while the S&P 500 was 0.71% softer at 3,234.85 and the Nasdaq Composite saw out the session 0.79% weaker at 9,020.77.

Cellnex acquires OMTEL in Portugal

Spanish wireless infrastructure operator Cellnex has reached an agreement with Altice Europe and Belmont Infra Holdings, to acquire the 100% of Portuguese telecommunications towers and sites operator Omtel for 800 million euros ($890 million), Cellnex said in a statement.

The acquisition also covers the rollout of 400 sites within the next four years. The company said that this build-to-suit (BTS) program could be enhanced with 350 additional sites through 2027.

Omtel currently operates 3,000 sites in Portugal, which represents around 25% of the telecommunications towers in the European country. Omtel’s contracts with its clients, of which the main one is Portugal Telecom (MEO), are for 20 years with additional five-year periods.

Cellnex Telecom currently operates a portfolio of approximately 58,000 sites including forecast roll-outs up to 2027. Cellnex operates in Spain, Italy, Netherlands, France, Switzerland, the United Kingdom, Ireland and now Portugal.

In related news, American Tower Corporation announced that it has closed its previously announced acquisition of Eaton Towers Holdings Limited, adding approximately 5,700 communications sites to its African portfolio, the firm said in a release.

The total value of the acquisition was approximately $1.85 billion, including the assumption of existing Eaton Towers debt.

This article was issued by Nadiia Grech, Junior Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.