Against the current backdrop of collapsed telco market caps, capex intensive investments, the EU Courts reversal on UK consolidation, and the European Commission’s (EC’s) appointment of Thierry Breton, there’s renewed optimism for consolidation in the EU’s telecoms sector.
Investment in European fibre assets by infrastructure funds will continue to gather pace, courtesy of a general push towards full-fibre penetration, according to industry experts and investors speaking on TMT Finance’s TMT Connect session last week, including key deal leaders from EY-Parthenon, Macquarie Capital and EQT Partners.
Evolution is synonymous with the communications infrastructure vertical; however, the pool of potential investors has been evolving equally as fast. Today, a growing variety of infrastructure funds, asset managers and other institutional investors are driving consolidation and convergence in the space.
Despite a high barrier to entry and rising valuations, competition for wireless infrastructure assets is increasing year on year. And while a variety of deep-pocketed infrastructure funds, investment vehicles and sovereign wealth funds now dominate the sector, the importance of credibility in the market oft prevails, setting bidders apart from the eventual acquirers.
While Houlihan Lokey is better known for advising clients through M&A processes, it's certainly no stranger to making acquisitions of its own.
Investing in sustainability as a key strategy for higher returns. By Chris Street, EVP Market Development, Princeton Digital Group.