EQT to collect non-binding offers for Adamo next week

Onivia, which is backed by Macquarie, Aberdeen Standard Investments and Daiwa Energy & Infrastructure, is showing serious interest in the business, three of the sources said. Macquarie Capital is thought to be advising Onivia on its approach, one of the sources added.

Ardian is also among the suitors interested in submitting an NBO, a fifth source familiar said, and Infravia is also looking to bid, three sources said.

Local Spanish fibre operator Lyntia, which was reported as being a potential bidder for the business, is showing "lukewarm" interest, two of the sources said. Lyntia could use the asset to help expand its services, one said, although a potential combination might face competition hurdles given that it is a competitor of Adamo via its Avatel fibre brand, another of the sources added.

Asterion Industrial Partners could also be lining up a bid, one of the sources said. Fiera Capital and First Sentier Investors have been mooted as possible bidders, after taking part in the sale of Euskaltel's network before the deal was halted, as previously reported.

Mergermarket reported in early June that Stockholm-headquartered EQT, which owns the asset through its Mid-Market Europe fund and is advised by UBS on the sale, had issued teasers to prospective bidders. The sale of the business, which one source said is marketed under the code name Project Eden, could value it at EUR 1bn-1.2bn, as reported.

Adamo has an expected adjusted annual EBITDA run-rate of EUR 70m based on projections from Q1 2021, two of the sources said. The figure does not include future growth prospects in later years, one of these sources added.

Adamo generated EBITDA of around EUR 13m from revenues of EUR 30m in 2019, according to company filings, and is expecting fast growth thanks to a focus on underserved rural areas where it has won several tenders to roll out its network, as previously reported.

Spain has the third-highest fibre penetration in Europe, with 62% of homes reached by full fibre, according to trade body FTTH Council Europe, but opportunities for more roll-out remain in rural areas. The government wants to reach 100% coverage by 2025 and has been tendering grants to support fibre installation in sparsely populated areas. Adamo and incumbent Telefonica have won most of the tenders in the past years.

EQT, Lyntia, Adamo and Macquarie Capital declined to comment. Infravia, Ardian, Onivia and Asterion did not return requests for comment.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Exits
• Southern Europe
• Infrastructure
• EQT