AMP Capital to buy Spain’s Axion
AMP Capital's global infrastructure equity platform is set to buy one of Spain's leading independent broadcasting and telecommunications infrastructure providers, Axion.
AMP Capital agreed to buy 100 per cent of the company from the current asset owner, Antin Infrastructure Partners.
Axion provided broadcasting, transport, site hosting, and operation and maintenance services to the radio, regional television and telecommunications sectors, with 70 per cent of its business being in Andalusia, in Southern Spain.
AMP Capital Global Infrastructure Fund managing partner, Boe Pahari, said Axion well placed to capture the growth opportunity in telecommunications, particularly as mobile network operators were increasingly looking to outsource infrastructure to reduce costs and increase network coverage.
"Axion fit perfectly into the strategy of our global infrastructure platform, with its strong cash generation supported by a contracted businesses model. Axion has an infrastructure network of 584 sites and an established customer base, making it an attractive acquisition."
Antin infrastructure Partner chief executive and managing partner, Alain Rauscher, said: "After five years of partnership with management, we have completed our value creation plans for the business and felt now was the right time to exit. Axion has found a strong new partner in AMP Capital who will support the company's next phase of development".
The transaction was expected to be completed by the end of 2016, subject to approvals and clearance by the Spanish competition authority.
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