Arqiva, a company that runs much of Britain’s TV and mobile infrastructure but is little known outside the industry, could put itself up for sale or list on the stock market as part of a review led by Rothschild, according to Reuters.
Arqiva was a pioneer in the UK with the BBC’s first televised broadcast in 1936. Since then it has worked with major mobile carriers, radio stations and leading British broadcasters. Shareholders include the Canada Pension Plan Investment Board and Macquarie Reuters said.
Media reports have suggested the firm could be worth between five and six billion pounds ($7.57 billion). With revenues in the year to end June 2016 of 850 million pounds, Arqiva could draw interest from other large pension funds, sovereign investors and private equity groups attracted to its predictable cash flow, as well as telecom towers operators in Europe and the United States, according to Reuters.
The British government said it would be cautious regarding foreign investors in “critical infrastructure,” having put Chinese investors on hold last year over a nuclear deal. Huawei, the giant Chinese equipment maker is said to be very interested in acquiring the towers and already has a footprint in Britain working with fixed and mobile operators Reuters said.
Sources told Reuters the process was at an early stage and no formal talks have been held with potential bidders although Cellnex and American Tower are considered contending buyers.
February 3, 2017
Reader Interactions