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Cinven bets on LatAm fibre optic network growth with €510m GNFT purchase

9 Jun 2014

fibre opticEuropean private equity major Cinven has made the ninth investment from its fifth fund by picking up Spain and Latin America fibre-optic network operator GNFT in a €510m deal.

It bought the asset from parent business Gas Natural Fenosa. GNFT provides infrastructure and transmission services to telecoms operators.

Cinven said its TMT and Spanish teams regarded GNFT as an attractive investment due to consistent organic growth, the structural growth in fibre networks in its regions and the significant growth opportunity in Latin America.

The company has generated a 13 per cent EBITDA increase CAGR between 2011 and 2013.

Cinven partner Jorge Quemada, said, “GNFT is a well invested fibre business in Spain with strong cash flow generation.

“The company also has exposure to high growth markets in Central and South America.

“GNFT has an excellent management team with a significant track record in the telecom industry with a combined 86 years in the sector and we look forward to working with them.

“Our TMT and Spanish teams have worked closely together to identify the investment opportunity in GNFT.

“We have invested successfully in telecom businesses such as Ziggo in the Netherlands and Numericable in France in the past and believe this will considerably benefit the growth of GNFT.”

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