According to insider sources, a consortium of investors led by KKR is quickly gaining ground in the race to acquire a stake in Deutsche Telekom AG’s sizable wireless tower portfolio.
Deutsche Telekom is trying to sell a stake in its tower business. The sale may rank among the most prominent infrastructure deals in Europe this year. Wireless towers appeal to institutional investors because they produce consistent, long-term returns.
According to new sources, KKR made a bid alongside Global Infrastructure Partners and Stonepeak. They reportedly posted a more competitive offer than Brookfield Asset Management and Spain’s Cellnex Telecom SA. The sources requested to remain anonymous since the information is private.
The sources further note that Deutsche Telekom officially intends to select a winner as early as this week. The asset is valued at approximately $20 billion. Even if the negotiations are well underway, no conclusions have been reached. The sources indicate that Deutsche Telekom might opt to retain the portfolio or select another bid.
A blockbuster deal
Deutsche Telekom, Brookfield, Cellnex, GIP, and KKR representatives declined to comment. In the past few months, multiple insiders named Vodafone as one of the interested parties. A Vodafone spokeswoman recently confirmed that the organization is looking at possibilities to meet goals for its tower business.