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Macquarie buys Digi Communication’s Spanish fiber networks for €750M

A consortium comprising financial conglomerate Macquarie is buying a part of Digi Communication NV’s fiber networks in Spain for up to 750 million euros ($809.63 million), the Bucharest-based operator said on Friday.

The Romanian telecom firm’s Spanish affiliate, DIGI Spain Telecom S.L.U., has struck a deal with the consortium under which the former will pass on its network in 12 local provinces, including Madrid, to the group.

Investment firm Abrdn and fund manager Arjun Infrastructure Partners are also part of the group.

The newly acquired fiber networks will be operated by Onivia, Spain’s largest independent wholesale fibre platform, Macquarie said.

Spanish newspaper Expansion had in September last year reported that Digi was in talks with the respective parties over a potential stake sale in the fibre network in a bid to raise more cash to invest locally.

Digi is expected to invest the money raised from the deal in Spain, the country which has Europe’s most extensive fiber networks to the home and has emerged as a hotspot for boosted investment in the last few years.

Digi, however, is also set to roll out its own mobile network in Spain, in lieu of the assets it will acquire as a part of the Orange-MasMovil deal.

To get the deal between Spain’s second and fourth-largest telecoms providers over the line, MasMovil will divest spectrum across three frequency spectrum bands to Digi so that the latter can build its own mobile network.

French telecoms group Orange and Spanish rival MasMovil are currently winning regulatory approvals over their Spanish tie-up to create a merged business with an enterprise value of 18.6 billion euros ($20.08 billion).

Besides the Orange-MasMovil deal and the entry of Digi, many other investors have been eyeing the Spanish telecom industry in the past couple of years. Reuters

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