Does Cellnex plan to buy the Telefónica towers?

Cellnex, the Spanish tower giant has just announced that it plans to invest up to 11,000 million euros in infrastructures, being able to acquire up to 15,000 new locations. A relevant fact considering that the company does not stop growing and its numbers are spectacular. In the last five years, the company led by Tobías Martínez has multiplied its market capitalization by three and this month has reached overtake Telefónica in the stock market reaching 21,000 million capitalization. The capital increase is to 39.45 euros, a price that was advanced as reasonable in April by the financial analyst José Javier González Murgto.

Cellnex vs Telefónica

Last April we compared in ADSLZone the capitalization of both companies and precisely at that time the Cellnex shares were trading at 50 euros while the shares were around 4 euros. Three months later, the tower has climbed another 13% while Telefónica is practically the same price. Why does the operator not grow while the turret continues to climb positions?

The COVID-19 crisis is eroding the accounts of all operators and Telefónica is no exception. In the case of Cellnex, its main business is infrastructures and it is not so exposed to the problems derived from the slowdown in consumption that causes customers to migrate from premium packages to lower cost offers. With this expansion that has just been announced, the turret can precisely change Telefónica’s plans compared to Telxius that we met a few days ago.

According Gines Parra, Co-founder of, Cellnex registers organic growth in the Torres business, and the intention now is to follow this path through acquisitions, in this case it may be the turn of the Spanish operator to serve one of its large assets to reduce the bulky debt that weighs so heavily on the company.

Telxius IPO

In 2016, the operator was forced to cancel the listing of the infrastructure subsidiary because the appropriate conditions were not in place. The financial turmoil and the doubts of the markets urged José María Álvarez-Pallete to cancel the exit. There has been speculation in recent days with a new attempt for 2021 but this expansion of Cellnex could change everything again. If the operator sells its towers, it will reduce its debt and also minimize risks, and it is not the first time that Telefónica has clicked on the listing of one of its subsidiaries. Looking back we find the skid of Terra, mobile phones or Yellow Pages.

In the next few weeks we will be clear of doubts but it is evident that the operator needs to reduce debt urgently and in this case Cellnex could be a good ally.

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