European PE Firm Cinven to Buy Gas Natural Fenosas Fiber Optic Network


Published Date : Jun 10, 2014

European private equity player Cinven has secured the purchase of the fiber optic network operator of Gas Natural Fenosa in Latin America and Spain in a USD 696.8 million deal. The announcement came from Cinven on Monday. The deal will see Cinven acquiring Gas Natural Fenosa Telecomunicaciones (GNFT) - a provider of high-speed transmission services to Spanish and Latin American telecom operators. 

According to Cinven partner Jorge Quemada, the company was attracted to the well-invested fiber business that GNFT has developed in Spain, coupled with its strong cash flow in the region. The telecom unit was established in 2009 when two businesses were combined following the merger of Unión Fenosa and Gas Natural. The strong financial performance of GNFT proved to be an enticing proposition for Cinven especially in the backdrop of high-potential growth opportunities in Latin America where a soaring demand for high-speed transmission and internet services exists. 

Cinven is no stranger to high-value deals in the telecommunications, technology, and media sector. In the past, it has purchased stakes in Fench cable company Numericable and the Netherlands’ largest cable provider Ziggo.

Earlier in 2014, Cinven’s affiliate company sold 13.27% of its stake in Numericable to Altice, the company’s parent based in Luxembourg. In 2013, Cinven had reported that it earned €1.7 billion when it sold its Ziggo holdings shortly after its IPO in 2012. Also, in January 2014, Liberty Global, a media firm that is controlled by billionaire John Malone said that it would acquire Ziggo in a €10 billion deal.