Asterion Industrial Partners, an independent investment management firm focused on European infrastructure in the mid-market, has acquired 100 per cent of Telefónica’s microwave radiolink portfolio in Spain through a carve-out process. The transaction was signed and closed on 31 March.The assets consist of a unique portfolio of antennae and radio electronic equipment for c10,800 microwave links (~13,000 circuits), connecting Telefónica’s mobile towers and other enterprise clients’ sites to their terrestrial fibre networks, mainly in low-density areas. Telefónica’s radiolink network is one of the largest in Spain and has best-in-class interconnection with Spain’s deepest fibre network. The portfolio provides a differentiated opportunity to access and continue to build out a rural-focused wholesale digital transport platform in Spain. Furthermore, the recently acquired high-quality portfolio is essential for the connectivity of isolated areas in particular, providing backhaul transport for mobile cellular networks and the capacity to meet the growing high-speed broadband demand in areas which are not economical to connect with fibre.
The investment is in line with Asterion’s investment strategy focused on strong downside protection through the provision of a long-term contractual agreement with Telefónica, managing the complexity of the carve-out as well as building on the opportunity for ongoing industrial engagement and commercialisation of the assets. Furthermore, the transaction reinforces Asterion’s long-term commitment to Spain and the telecoms sector as part of its investment mandate. The transaction complements Asterion Industrial Infra Fund I existing investments in France, Spain and the UK in the energy services, renewables, data centre and renewable distributed energy sectors.