Cellnex Weighs Over 3 Billion-Euro Equity Offering

(Bloomberg) -- Cellnex Telecom SA, Europe’s largest wireless tower operator, is considering raising more than 3 billion euros ($3.4 billion) of fresh capital as it seeks to build a warchest for future acquisitions, people familiar with the matter said.

The Barcelona-based company is discussing a potential share sale with advisers and could announce the plan as soon as this month, according to the people, who asked not to be identified because the information is private. Cellnex is still working out the exact size and timing of any capital increase, the people said.

The company is scheduled to announce its second-quarter results on July 20, according to its website. Shareholders are scheduled to meet for their annual meeting on July 21 and the meeting’s agenda includes the delegation of powers to the board to increase share capital.

Towers are in high demand across Europe, with investors attracted to the assets’ steady long-term revenue. Shares of Cellnex have risen 46% this year, hitting a fresh all-time high Monday and giving the company a market value of 21.5 billion euros. The Stoxx Europe 600 Telecommunications Index has fallen 13%.

Shares of Cellnex declined 0.1% to 55.84 euros at the close Tuesday in Madrid, after earlier falling as much as 1.9%.

Cellnex has said that it could turn to equity offerings to fund its strategy of growth through acquisitions. It’s already announced several purchases in the past few months, including a transaction that helped it enter the Portuguese market.

No final decisions have been made, Cellnex could decide against proceeding with a deal, the people said. A representative for Cellnex declined to comment.

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