KKR has beaten several other infrastructure fund managers to acquire a 49% interest in Spanish ‘dark fibre’ infrastructure operator Reintel.
Red Eléctrica Group, which owns Reintel, said KKR has agreed to pay €971m for the stake after a four-month sale process that attracted interest from “several infrastructure funds”.
It said Reintel was the leading operator of dark fibre infrastructure, which refers to unused optical-fibre networks that can be leased. The transaction values the company at €2.3bn.
Red Eléctrica Group’s main business is the operation and management of electricity transmission lines. Reintel manages dark-fibre infrastructure along Red Eléctrica de España’s electricity transmission network and Adif AV’s fibre-optic network.
Roberto García Merino, CEO of Red Eléctrica Group, said: “Following an extremely thorough research process, we are delighted to have reached an agreement with KKR, which will be a highly prestigious, long-term strategic partner to the group going forward.
“This agreement clearly underscores the value of the group’s telecommunications activity and will support its future development, reinforcing the essential services we provide to society.”
KKR is investing as part of its core infrastructure strategy which focuses on high quality assets in developed OECD markets.
Oleg Shamovsky, managing director and head of core infrastructure in Europe at KKR, said: “This is a very important strategic partnership for KKR alongside a highly respected blue-chip Spanish corporate.
“We have been following Reintel’s development for many years and are delighted to have the opportunity to invest in this critical telecommunications infrastructure company, and bring to bear KKR’s capabilities and experience in the sector as we strategically partner with Red Eléctrica”.
