Saudi Telecom Buys Mobile Tower Unit in Europe from United Group
Posted on 04/22/2023
On April 20, 2023, United Group BV reached an agreement to sell 100% of its mobile tower infrastructure unit in Bulgaria, Croatia, and Slovenia (TowerCo) to TAWAL, a subsidiary of stc Group (Saudi Telecom Company). The transaction values TowerCo, comprising more than 4,800 towers, at €1,220 million on a cash free and debt free basis, fully payable in cash, which represents an EV / 2022 EBITDAal (pre IFRS 16) multiple of 20.1x. In late 2022, BC Partners started the roadshow to sell United Group’s network towers portfolio.
United Group’s sale of its mobile towers follows an industry trend of separating and monetizing mobile tower infrastructure by telecom operators in Europe and globally. Proceeds from the sale will allow United Group to significantly delever the business, freeing up cash flow for future growth. The transaction will enable continued investment in the mobile network including plans to roll out aroundd 2,000 additional sites over the next 20 years, which will allow United Group to continue providing high quality service to its customers on a long-term basis.
The transaction is the first investment made by TAWAL in the European telecoms sector. TAWAL is the largest integrated ICT infrastructure provider in the MENA region and owns a portfolio of more than 16,000 mobile towers.
In the past three years, United Group has cemented its position as the leading multi-play telecoms and media company in Southeast Europe.
United Group is majority owned by BC Partners, a private equity firm.
Advisors
Goldman Sachs acted as financial adviser to United Group on the transaction. United Group will report its FY results on Monday. The terms of the transaction include long term Master Services Agreements and a Service Level Agreement for our continued use of the telecommunications towers infrastructure following completion of the transaction.
The closing of the transaction is subject to customary conditions and is expected to take place during the second half of 2023.
