Post balance sheet events
Spain corporate reorganisation
Additionally, on 14 February 2018, the following operations occurred between Spanish companies within the scope of consolidation in which Cellnex holds a 100% shareholding, and as such this will not have an impact on the consolidated financial statements for 2018:
- Acquisition by Cellnex Telecom España, S.L.U. of 100% of the shares of Retevisión-I, S.A.U., Tradia Telecom, S.A.U. and On Tower Telecom Infraestructuras, S.A.U. owned by Cellnex Telecom, S.A., for a carrying amount of EUR 977 million.
- To finance the acquisition, Cellnex Telecom, S.A. made an equity contribution to Cellnex Telecom España, S.L. for the same amount.
2018 convertible bond
During January 2018, Cellnex Telecom priced the issuance of EUR 600 million of convertible bonds. The shares underlying the bonds are equivalent to 6.8% of the company’s share capital, based on the initial conversion price. The bonds’ conversion price into Cellnex shares has initially been set at EUR 38.0829 representing a premium of 70% over the volume weighted average price of a share on the Spanish Stock Exchange between market opening at that date and pricing of the offering.
The bonds will carry a coupon of 1.5% payable annually in arrears. Cellnex may opt to redeem all (but not some) of the bonds on or after 18 July 2022, if the market value of the underlying shares per EUR 100,000 principal amount of the bonds exceeds EUR 130,000 during a specified period of time, or, at any time, if more than 85% of the aggregate principal amount of the bonds initially issued have been converted and/or redeemed and/or purchased and cancelled. The Terms and Conditions of the bonds include a change of control put clause, at the option of bondholders, which could result in early repayment.
The Issuance was rated by Fitch, with a rating of BBB-, which is the company’s current rating. Cellnex intends to seek admission to trading for the bonds on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange.
Treasury shares purchase program
During January 2018, Cellnex purchased 67,505 treasury shares, representing 0.03% of the total shares outstanding, with an average price of EUR 21.55 per share, valuing the total stake at that time at EUR 1,458 thousands.
Reorganisation plan
In February 2018 the Group has communicated its intention to present a plan to adjust the workforce in its Spanish subsidiaries Tradia and Retevisión, which manage the terrestrial television infrastructure network. The Group has started conversations with the workforce representatives in order to propose and to reach an agreement in similar conditions to the reorganisation plan made between 2012 and 2014.
This plan fits into the reorganisation process relating to the broadcasting business that is being undertaken by the Group’s subsidiary companies. Under this plan, the Group is seeking to adapt its structure to the new business models, which have been widely modernised in recent years with the introduction of equipment which can be maintained remotely, without the necessity to physically travel to the sites where the equipment is installed.
In this way, the Group is seeking to renew its workforce and modify the professional profiles required to manage these new technologies. In other countries which Cellnex has entered in recent years as part of the expansion of its telecommunications infrastructure management business for mobile telephones, the Group has established a lean structure, using outsourced resources for the various infrastructure maintenance services.
