Spain-based telecom tower operator Cellnex is engaged in discussions to divest its majority stake in its Swiss subsidiary to Manulife Financial Corporation's investment management unit, according to two people briefed on the matter. One of the sources said Manulife has been working alongside financial advisers to explore a potential transaction.
Cellnex holds 72% of the Swiss business, while Swiss Life Asset Managers owns the remaining 28%. Analysts at JPMorgan have placed a valuation on the entire Swiss unit at about 2 billion euros.
These talks follow an earlier effort to sell the Swiss operations that was initiated last year but subsequently halted after the bids received were described as below expectations by Cellnex Chief Executive Marco Patuano, who commented on the pause last month. The two anonymous sources caution that negotiations may not culminate in a deal.
It was not possible to confirm whether Cellnex is engaging with other prospective buyers or whether Swiss Life Asset Managers intends to put its minority stake on the market as part of any transaction. Requests for comment were declined or not immediately answered: Cellnex and Manulife declined to comment on the discussions, while Swiss Life Asset Managers did not immediately respond to an inquiry.
The potential sale sits against a backdrop of strategic asset disposals at Cellnex. After a period of growth driven by acquisitions, rising interest rates prompted the company to prioritise reducing leverage through sales of assets. Patuano has more recently stated that the necessary asset disposals had been completed.
Separately, last year Global Communications Infrastructure (GCI), a vehicle backed by Manulife Investment Management, acquired a 50% stake in Sweden's Tele2 telecom infrastructure assets, marking GCI's entry into the European market.
Sources who provided details on the talks asked to remain anonymous because the discussions are confidential. They emphasised uncertainty around whether the negotiations will lead to a completed transaction.
Currency used in the reporting: $1 = 0.8547 euros.
Note: Information in this report is based on accounts from people with knowledge of the situation and on valuations cited by analysts. No parties have confirmed the transaction publicly.