Allianz Capital Partners Finds a Partner in Telefonica for FTTH Venture in Germany

Posted on 10/29/2020

Allianz Capital Partners GmbH, a unit of Allianz SE and Spanish telecommunications company Telefónica, S.A. have formed a partnership company to invest up to €5 billion to expand fibre-to-the-home (FTTH) network in Germany. The newly-formed company will be 50% owned by Allianz and Allianz European Infrastructure Fund with Telefonica holding the remaining stake via a 40% holding by its infrastructure arm and a 10% stake through its Telefónica Deutschland subsidiary. The joint venture will act as an independent wholesale company to deploy fibre optic networks across Germany

Telefónica will invest up to €500 million in equity and Allianz will invest up to €1 billion through different instruments.

The deal is subject to to regulatory approval.

Telefónica was created in Madrid in 1924 as Compañía Telefónica Nacional de España (CTNE) with ITT as one of its major shareholders. In 1945, the Spanish state acquired by law a share of 79.6% of Telefónica. This government stake in Telefónica was diluted by a capital increase in 1967.

Earlier in 2020, EQT Infrastructures, part of EQT Partners AB, and Ontario Municipal Employees Retirement System (OMERS) acquired fiber-to-the-home company (FTTH) Deutsche Glasfaser from private equity firm KKR for about US$ 2.74 billion plus debt. In 2019, EQT Infrastructure bought Inexio, and is merging that company with Deutsche Glasfaser.

Keywords: Telefonica, S.A.

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