The Eqt fund buys the WindTre network, value set at 3.4 billion

EQT Infrastructure has signed an agreement to acquire a 60% stake in the newly incorporated company that will own and operate the mobile and fixed network of Italian telecommunications operator Wind Tre.

The expected transaction (which after the appropriate permits will be closed in 6-9 months) is announced by a press release from the buyer, which specifies that the transaction takes place on the basis of an enterprise value of 3.4 billion.

The operation involves the purchase of “a 60% stake in a newly established entity (the “Company”) that will own and operate Wind Tre’s mobile and fixed network infrastructure. Wind Tre’s current owner, CK Hutchison, will remain an investor along with EQ extension Infrastructure and will hold a 40% stake in the Company”. An operation that therefore comes at a time of great turmoil in the communication infrastructure, with the well-known game of the Tim network open.

“Across Europe the need for robust and reliable digital infrastructures is growing, driven by the increase in mobile data traffic, the densification of 5G cell towers, the IoT (Internet of Things) and new technologies. The Italian mobile network will need of investments and greater extension in the coming years to meet this growing demand,” the Eqt note said. “Following the spin-off from Italian telecommunications operator Wind Tre, the Company will control and operate the country’s largest mobile network and a portfolio of assets, including radio masts, base stations, carrier network and associated contracts. The Company will the first independent access network in Europe mainly focused on mobile telephony and dedicated to the provision of wholesale services to mobile operators through its state-of-the-art network, which at the end of 2022 already covered around 67% of Italy with 5G reception”.

EQ extension further states that it will “leverage experience in developing digital infrastructure companies to support the Company’s strategy. This will primarily consist of developing the Company’s network and service offering while pursuing further growth opportunities in areas such as ‘fixed wireless access, the IoT and private networks’.

Francesco Malvezzi, Managing Director and Head of Italy of the advisory team of EQ extension Infrastructure, said: ” EQ extension Infrastructure is excited to partner with CK Hutchison and the Company’s management on this transaction. We worked closely with CK Hutchison to develop this groundbreaking telecommunications transaction. EQ extension strongly believes in the strategic logic of separating the infrastructure and services of mobile operators and we see this investment as a model for future operations with operators in other European markets. The acquisition confirms the commitment of EQ extension to expand our presence in Italy and to continually seek quality investment opportunities in the country.” Benoit Hanssen, the Company’s incoming Chief Executive Officer, said: “We are thrilled to partner with EQ extension Infrastructure to lead the development of a leading independent player in multi-tenant radio access networks globally. We are proud to be the first operator in Europe to have engineered such an innovative transaction, in partnership with an experienced and renowned investment firm.”