Why the Telxius IPO was cancelled
TowerXchange seeks to derive lessons learned from the cancelled IPO of Telefónica’s towerco
**UPDATE** Telefonica has agreed to sell a 40% stake in Telxius to KKR, beating bidders including GIC Private, CVC Capital Partners, and Ardian, who were all believed to be interested in the asset. The deal is valued at €1.3bn and includes a call option for 62mn Telxius shares for €790.5n.
Investors were underwhelmed by the package of infrastructure assets Telefónica brought to market and, despite a downward recalibration of valuation, ultimately rejected the proposition. What specifically did they not like about Telxius, what lessons can be learned, and what next for Telefónica’s towers?
It’s no secret that Telefónica has been increasingly keen to restructure their balance sheet, relieve debts in excess of €50bn, and raise capital for dividends to prop up their valuation.