CELLNEX takes majority stake in ILIAD 7
Context
The acquisition of Iliad 7 by Cellnex forms part of a wider 2-billion-euro international divestment including 2,200 Italian telecom installations and Swiss infrastructure assets. This transaction represents a strategic balance sheet rebalancing for Iliad, currently facing retail market compression caused by pricing pressure from domestic rivals SFR and Bouygues Telecom. The immediate monetary intake allows the seller to accelerate corporate deleveraging while securing investment capital for upcoming nationwide fiber rollouts and next-generation 5G spectrum allocations. The operational structure implements a long-term sale-and-leaseback agreement, which maintains uninterrupted cellular coverage for Free while shifting property maintenance burdens to the buyer. Regulatory clearance from the French antitrust authority confirms that the market structure retains sufficient scale through alternative tower companies to prevent post-transaction pricing distortions.
ILIAD 7, which reported an EBITDA margin of in 2019, is valued in this transaction at an EV/EBITDA multiple of , a level to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (15.1x).
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Target
Iliad 7, based in France, operates as a passive telecommunications infrastructure provider housing cellular transmission equipment for the mobile network operator Free. The company manages a dedicated portfolio of 5,700 macro sites, consisting of ground-based towers, rooftop masts, and structural shelters isolated from any active frequency broadcasting components. These physical installations support third-party wireless hardware to ensure regional network connectivity, binding the asset utility to geographical topography and high-point positioning. The operation yields stable rental income through long-term master lease agreements with the parent operator, who remains anchored to the structures to preserve its commercial coverage. This commercial framework builds a high level of revenue visibility since relocating active mobile antennas triggers severe technical friction and capital expenditure. Additionally, strict municipal zoning regulations and scarce real estate options prevent the construction of overlapping tower developments, protecting the network from new infrastructure competition.
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REFERENCES
Valuation range: EV 1b - 4b EUR
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Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.
Acquirer: cellnex