Two sources “close to the matter” say that Deutsche Telekom will sell German mobile phone masts in a 5 billion Euro ($5.5 billion USD) deal, according to Reuters. The sources say that Deutsche wants to have more funds available to invest in European networks such as infrastructure investors, insurers, private equity groups and pension funds. Goldman Sachs and Morgan Stanley have been tapped to organize auctioning off of the masts.
American Tower, Crown Castle and SBA are said to be interested in the sale, which should begin in the fall, Reuters noted. The total value of the assets are yet to be determined, but “details of the leasing contracts as well as the assessment of how easily additional users for the masts can be attracted” will be factors in determining valuation, the sources told Reuters. Deutsche plans on sending out information packages to prospective buyers at the end of the summer, expecting feedback to weigh how many of the masts it will sell.
Other groups that recently sold infrastructure to gain more capital and cut debt include Telefonica Deutschland and America Movil.