EQT sells Spanish telecommunications company Adamo to French Ardian for more than € 1 billion

By Clara-Laeila Laudette

MADRID, Reuters

Barcelona-based Adamo provides fixed, broadband and mobile services to around 250,000 subscribers, with a focus on customers in rural areas, while its fiber-optic network serves around 1.8 million homes across Spain.

The deal is expected to be finalized in the first quarter of 2022, said EQT, with UBS bank acting as lead financial adviser, ING as co-financial adviser and Allen & Overy as legal adviser.

Incumbent Telefonica is also considering selling a stake in its sprawling Spanish fiber network, which could be valued at up to 15 billion euros ($ 17.37 billion), while network operator Red Electrica is considering to sell part of its own network.

European telecoms operators have looked for ways to reduce debt and generate cash flow after years of high costs and falling margins, especially in Spain where telecom companies struggle in a hyper-competitive, fragmented and low-cost climate. .

The rural fiber market has seen particular growth, with new entrants such as Avatel – which became the sixth fiber operator in Spain after purchasing 110 local fiber suppliers between 2020 and 2021 – considering up to 400 acquisitions. additional.

($ 1 = € 0.8648)

(Report by Clara-Laeila Laudette and Nathan Allen, edited by Louise Heavens and Bernadette Baum)

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