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Telefónica follows Vodafone with plan to offload its tower assets

The trend for mobile operators to offload their towers intensifies. Vodafone recently announced plans for an €18.4bn ($20.3bn) spin-off, following the example of MNOs in the USA, China, India and many other markets. Now, Telefónica is pursuing a similar plan, and analysts believe that, if its assets are valued in the same way that Vodafone is claiming for its towers, the Spanish telco could achieve a price of €7.2bn ($7.9bn). Vodafone has argued strongly that mobile infrastructure is very undervalued and that it would expect an enterprise value, for its European assets, of at least 20 times EBITDA – even allowing for some valuation drops if a large number of towers suddenly comes to market. Telefónica is considering “monetization” options…

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